{"id":376295,"date":"2021-12-04T04:11:23","date_gmt":"2021-12-04T01:11:23","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/didi-bows-to-china-pressure-will-delist-from-nyse-months-after-its-debut\/"},"modified":"2021-12-04T04:11:23","modified_gmt":"2021-12-04T01:11:23","slug":"didi-bows-to-china-pressure-will-delist-from-nyse-months-after-its-debut","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/didi-bows-to-china-pressure-will-delist-from-nyse-months-after-its-debut\/","title":{"rendered":"#Didi bows to China pressure, will delist from NYSE months after its debut"},"content":{"rendered":"<p>&#8220;<strong>#Didi bows to China pressure, will delist from NYSE months after its debut<\/strong>&#8221;<\/p>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>Just five months after its debut, ride-hailing giant\u00a0Didi\u00a0Global said it plans to withdraw from the New York Stock Exchange and pursue a Hong Kong listing, a stunning reversal as it bends to Chinese regulators angered by its US IPO.<\/p>\n<p>The company\u2019s shares were down around 15% after swinging between gains and losses in premarket trading as investors initially bet the move would <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ease Beijing and serve as a catalyst for a revival of its business prospects at home.  Shares of the company plunged by day\u2019s end, closing down 22%..<\/p>\n<p>\u201cFollowing careful research, the company will immediately start delisting on the New York stock exchange and start preparations for listing in Hong Kong,\u201d\u00a0Didi\u00a0said on its <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>-like Weibo account on Friday.<\/p>\n<p>Didi\u00a0did not explain its reasons for the plan but said in a separate statement it would organize a shareholder vote at an appropriate time and ensure its New York-listed stock would be convertible into \u201cfreely tradable shares\u201d on another internationally recognized stock exchange.<\/p>\n<p>Sources told Reuters last month that Chinese regulators had pressed\u00a0Didi\u2019s top executives to devise a plan to delist from the New York Stock Exchange due to concerns about data security.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"683\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse2.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Didi logo and signage on exterior of headquarters in China\" class=\"wp-image-20365192\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse2.jpg?quality=90&amp;strip=all&amp;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse2.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse2.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption> Didi shares plunged 22 percent on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> the company was delisting from NYSE.<\/figcaption><figcaption><span class=\"credit\">Barcroft Media via Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n<p>Didi\u2019s board convened on Thursday and approved the US delisting and HK listing plans, said two sources with knowledge of the matter.<\/p>\n<p>Didi\u00a0pushed ahead with a $4.4 billion U.S. initial public offering in June despite being asked to put it on hold while a review of its data practices was conducted.<\/p>\n<p>The powerful Cyberspace Administration of China (CAC) then quickly ordered app stores to remove 25 of\u00a0Didi\u2019s mobile apps and told the company to stop registering new users, citing national security and the public interest.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse4.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Didi CEO Cheng Wei\" class=\"wp-image-20368434\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse4.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse4.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse4.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Didi, led by CEO Cheng Wei,\u00a0did not explain its reasons for deciding to delist from the NYSE but said in a separate statement it would organize a shareholder vote at an appropriate time.<\/figcaption><figcaption><span class=\"credit\">Visual China Group via Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n<p>Didi, whose apps, in addition to ride-hailing, offer products such as delivery and financial services, remains under investigation.<\/p>\n<p>Redex Research analyst Kirk Boodry, who publishes on Smartkarma, said there is an expectation\u00a0Didi\u00a0may need to buy shares at the $14 IPO price to avoid legal issues and at the very least will pay more than the shares current trading price.<\/p>\n<p>However, there was still uncertainty over what the delisting means for investors. \u201cThere may also be some hope that by doing this,\u00a0Didi\u00a0management will improve its regulatory relations, but I am less confident on that,\u201d Boodry added.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse5.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Jack Ma\" class=\"wp-image-20368537\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse5.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse5.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse5.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Didi is not alone in its dealings with China. Billionaire Jack Ma also ran afoul of Chinese authorities, leading to the dramatic scuppering of a mega-IPO for Ant Group last year.<\/figcaption><figcaption><span class=\"credit\">Visual China Group via Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n<p>The upending of\u00a0Didi\u2019s New York listing \u2013 likely to be a difficult and messy process \u2013 illustrates both the huge clout that Chinese regulators possess and their emboldened approach to wielding it.<\/p>\n<p>Billionaire Jack Ma also ran afoul of Chinese authorities after blasting the country\u2019s regulatory system, leading to the dramatic scuppering of a mega-IPO for Ant Group last year.<\/p>\n<p>Did\u2019s move will likely further discourage Chinese firms from listing in the United States and could prompt some to reconsider their status as U.S. publicly traded companies.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse8.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Chinese President Xi Jinping\" class=\"wp-image-20368494\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse8.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse8.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse8.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The upending of Didi\u2019s New York listing illustrates both the huge clout that regulators in China \u2014 led by President Xi Jinping \u2014 possess and their emboldened approach to wielding it.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n<p>\u201cChinese ADRs face increasing regulatory challenges from both U.S. and Chinese authorities. For most companies, it will be like walking on eggshells trying to please both sides. Delisting will only make things simpler,\u201d said Wang Qi, CEO at fund manager MegaTrust Investment (HK).<\/p>\n<p>Didi\u00a0is planning to proceed with a Hong Kong listing soon and is not looking at being taken private, sources with knowledge of the matter told Reuters.<\/p>\n<p>It aims to complete a dual primary listing in Hong Kong in the next three months and delist from New York by June 2022, said one of the sources.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse6.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"A smiling man leans out the window of a Didi taxi \" class=\"wp-image-20368549\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse6.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse6.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse6.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Didi provided 25 million rides a day in China in the first quarter, according to its IPO prospectus. It made its New York debut on June 30.<\/figcaption><figcaption><span class=\"credit\">South China Morning Post via Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n<p>The sources were not authorized to talk to the media and declined to be identified.\u00a0Didi\u00a0did not immediately respond to Reuters\u2019 requests for comment, and the CAC has yet to comment on its announcement.<\/p>\n<p>\u201cNot long after the IPO U.S. investors had been trying to sue\u00a0DiDi\u00a0for failing to disclose its ongoing talks with the Chinese authorities. This is unlikely to be taken any better,\u201d said William Mileham, an equity analyst at Mirabaud. \u201cIt appears that\u00a0DiDi\u00a0are not waiting to be dual-listed, but could well be de-listed from the U.S. before it starts trading on the HK stock exchange.\u201d<\/p>\n<p>Listing in Hong Kong, however, might prove complicated, particularly in a tight three-month timeframe, given\u00a0Didi\u2019s history of compliance problems and the scrutiny it has faced over unlicensed vehicles and part-time drivers.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse7.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"A Didi driver using the Didi app on his smartphone behind the steering wheel of his car.\" class=\"wp-image-20368665\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse7.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse7.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse7.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Didi may be eyeing listing in Hong Kong, but that might prove complicated given Didi\u2019s history of compliance problems and the scrutiny it has faced over unlicensed vehicles and part-time drivers.<\/figcaption><figcaption><span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n<p>The Hong Kong bourse does not comment on individual companies, a spokesperson said. Shares on the exchange however jumped 4% on prospects of a\u00a0Didi\u00a0listing.<\/p>\n<p>Didi\u00a0provided 25 million rides a day in China in the first quarter, according to its IPO prospectus. It made its New York debut on June 30 at $14 per American Depositary Share, but those shares had slid 44% by Thursday\u2019s close, valuing it at $37.6 billion.<\/p>\n<p>Its main shareholders are SoftBank\u2019s Vision Fund, with a 21.5% stake, and Uber Technologies Inc, with 12.8%, according to a filing in June by\u00a0Didi.<\/p>\n<p>Sources have also told Reuters that\u00a0Didi\u00a0is preparing to relaunch its apps in China by the end of the year in anticipation that Beijing\u2019s cybersecurity investigation of the company would be wrapped up by then.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2021\/12\/03\/didi-bows-to-china-pressure-will-delist-from-nyse-months-after-its-debut\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Didi bows to China pressure, will delist from NYSE months after its debut&#8221; Just five months after its debut, ride-hailing giant\u00a0Didi\u00a0Global said it plans to withdraw from the New York Stock Exchange and pursue a Hong Kong listing, a stunning reversal as it bends to Chinese regulators angered by its US IPO. The company\u2019s shares&#8230;<\/p>\n","protected":false},"author":1,"featured_media":376296,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/didi-will-delist-from-nyse.jpg?quality=90&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[120829,4973,5007,71278,70934,73424],"class_list":["post-376295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-12-3-21","tag-china","tag-ipo","tag-nyse","tag-regulation","tag-ride-sharing"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/376295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=376295"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/376295\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/376296"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=376295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=376295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=376295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}