Didi Chuxing, China’s largest car-sharing company, eventually decided to delist it on the New York Stock Exchange under pressure from authorities. Instead, it will be listed on the Hong Kong Stock Exchange.
According to NYT on the 3rd, Didi Chuxing said in a one-line statement posted on Weibo on the 3rd, “We will start delisting the New York Stock Exchange immediately,” adding, “We will start preparing for listing in Hong Kong at the same time.”
Didi Chuxing then said in a separate English statement, “We will hold a shareholders’ meeting on this issue at an appropriate time in the future,” adding, “We will ensure that U.S. stocks (to be delisted) can be transferred freely on internationally recognized stock exchanges.”
Didi Chuxing was listed on the New York Stock Exchange on June 30 and raised $4.4 billion.
This was the largest IPO in the U.S. stock market since Alibaba Group in 2014.
Didi Chuxing’s decision is very unusual in that it came less than half a year after it was listed on the New York Stock Exchange.
The market believes Didi Chuxing has been delisted under pressure from authorities.
Bloomberg reported on the 25th of last month that China’s National Cyber Information Board Office demanded Didi Chuxing to voluntarily delist the New York Stock Exchange, citing “concerns over sensitive data leakage.” Since Didi Chuxing “forced” listing on the New York Stock Exchange in June despite warnings, the Chinese government has said sensitive data in China could escape to the U.S. and other places.
Immediately after Didi Chuxing’s listing on the New York Stock Exchange, the Chinese government launched an Internet security review against the company and banned new downloads of Didi Chuxing-related apps.
