{"id":47090,"date":"2021-12-03T07:24:27","date_gmt":"2021-12-03T07:24:27","guid":{"rendered":"https:\/\/qatar-news.org\/qatarnewsEn\/?p=47090"},"modified":"2021-12-03T07:24:27","modified_gmt":"2021-12-03T07:24:27","slug":"ride-hailing-giant-didi-to-delist-from-new-york-stock-exchange","status":"publish","type":"post","link":"https:\/\/qatar-news.org\/qatarnewsEn\/?p=47090","title":{"rendered":"Ride-hailing giant Didi to delist from New York Stock Exchange"},"content":{"rendered":"
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Move comes after company ran afoul of Chinese authorities by pushing ahead with a $4.4bn US IPO in July.<\/p>\n<\/div>\n

\n

Ride-hailing giant Didi Global said on Friday it will delist from the New York Stock Exchange and pursue a listing in Hong Kong, succumbing to pressure from Chinese regulators concerned about data security.<\/p>\n

It ran afoul of Chinese authorities<\/a> by pushing ahead with its $4.4bn US IPO in July despite being asked to put it on hold while a review of its data practices was conducted.<\/p>\n

The powerful Cyberspace Administration of China (CAC) then quickly ordered app stores to remove 25 mobile apps operated by Didi and also told the company to stop registering new users, citing national security and the public interest. Didi remains under investigation.<\/p>\n

\u201cFollowing careful research, the company will immediately start delisting on the New York stock exchange and start preparations for listing in Hong Kong,\u201d Didi said on its Twitter-like Weibo account.<\/p>\n

It later said in a separate English language statement that its board had approved the move.<\/p>\n

\u201cThe company will organize a shareholders meeting to vote on the above matter at an appropriate time in the future, following necessary procedures,\u201d it said.<\/p>\n

Didi made its New York debut in June [Brendan McDermid\/Reuters]<\/figure>\n

Sources have told Reuters that Chinese regulators pressed Didi\u2019s top executives to devise a plan to delist from the New York Stock Exchange due to concerns about data security.<\/p>\n

\u201cDidi\u2019s plan to delist in the United States and the listing of Hong Kong stocks I believe will have an obvious impact on location decisions for large technology stocks\u2019 future listings,\u201d said Kenny Ng, securities strategist at Everbright Sun Hung Kai in Hong Kong.<\/p>\n

\u201cAt the same time, this event makes the market believe that the current industry supervision of technology stocks in the mainland will continue, and the decline in the stock prices of technology stocks listed in Hong Kong today also reflects this factor.\u201d<\/p>\n

Sources have told Reuters that Didi is preparing to relaunch its apps in the country by the end of the year in anticipation that Beijing\u2019s cybersecurity investigation into the company would be wrapped up by then.<\/p>\n

The CAC did not immediately respond to a request for comment on Didi\u2019s plans to delist from New York.<\/p>\n

Didi made its New York debut on June 30 at $14 per American Depositary Share, which gave the company a valuation of $67.5bn on a non-diluted basis. Those shares have since slid 44 percent until Thursday\u2019s close, valuing it at $37.6bn.<\/p>\n

Shares in Didi investor SoftBank Group Corp fell more than 2 percent after the Didi announcement, also hurt by Southeast Asia ride-hailing giant Grab\u2019s slump in its Nasdaq debut.<\/p>\n

SoftBank\u2019s Vision Fund owns 21.5 percent of Didi, followed by Uber Technologies Inc with 12.8 percent, according to a filing in June by Didi.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Move comes after company ran afoul of Chinese authorities by pushing ahead with a $4.4bn US IPO in July.Ride-hailing giant Didi Global said on Friday it will delist from the New York Stock Exchange and pursue a listing in Hong Kong, succumbing to pressure from Chinese regulators concerned about data security. It ran afoul of…<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-47090","post","type-post","status-publish","format-standard","hentry","category-spotlight_news"],"_links":{"self":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts\/47090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47090"}],"version-history":[{"count":0,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts\/47090\/revisions"}],"wp:attachment":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}