Didi plans to exit NYSE to join Hong Kong

Didi plans to exit NYSE to join Hong Kong

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Beijing’s move to target Didi was generally interpreted as retaliation for the company’s decision to go public outside of China. Didi became a poster child for the government’s efforts to rein in what it perceives as wayward Big Tech businesses. Chinese authorities suggested that companies having data on moreover one million users seek authorisation before listing overseas in the weeks following the IPO.

Didi’s departure from New York has also been hinted at recently. After the Didi announcement, shares of Didi investor SoftBank Group Corp slumped 2%, weighed down by Southeast Asian ride-hailing firm Grab’s Nasdaq launch collapse.

Despite being urged to postpone its $4.4 billion initial public offering in the United States while reviewing its data procedures was performed, Didi went ahead with it.

The powerful Cyberspace Administration of China (CAC) then promptly ordered the removal of 25 of Didi’s mobile apps from app stores and forced the company to stop registering new customers. 

Didi Global, the ride-hailing behemoth, has announced that it will delist from the New York Stock Exchange barely five months after its initial public offering (IPO) and pursue a Hong Kong listing after Chinese regulators chastise it for refusing a request to put its IPO on hold.

The U.S. Securities and Exchange Commission (SEC) announced stringent new regulations for Chinese companies that list in the United States earlier on Thursday. In addition, Beijing vowed a crackdown on technology businesses that list overseas just days after their initial public offering (IPO).

The powerful Cyberspace Administration of China (CAC) then promptly ordered the removal of 25 of Didi’s mobile apps from app stores and forced the company to stop registering new customers, citing national security and public interest as justifications. Didi is still being investigated.

Because of data security concerns, Chinese officials urged Didi’s top executives to design a plan to delist the company from the U.S. stock market. Didi also stated that removing its app from Chinese app stores will have a negative impact on revenue.

Despite being urged to postpone its $4.4 billion initial public offering in the United States while reviewing its data procedures was performed, Didi went ahead with it. CAC cites national security and public interest as justifications. Didi is still being investigated.

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