According to Bloomberg News and Hong Kong’s South China Morning Post (SCMP) on the 18th, Didi Global, a subsidiary of Didi Chuxing, will vote on the issue of delisting the NASDAQ at an extraordinary shareholders’ meeting to be held on May 23.
Didi Global’s decision is seen as a sign that it will comply with Chinese regulations.
Didi Global announced in a statement on the 16th that it would not seek to list other stocks until the NASDAQ delisting process is completed.
Earlier, Chinese authorities launched an investigation into Didi Chuxing Group two days after Didi Global was listed on the New York Stock Exchange on June 30 last year through an IPO worth $4.4 billion.
Regarding the investigation into Didi Chuxing at the time, China’s National Cyber Information Office (CAC) said, “It is only to prevent data security risks and protect national security.”
Since July 16 last year, Chinese authorities have jointly conducted a high-intensity Internet security review on Didi Chuxing by the CAC, the National Internet Information Association, the Ministry of Public Security, and the Ministry of National Security.
Chinese authorities have yet to make any announcement regarding Didi Chuxing’s investigation and are continuing the investigation. It is observed that the results of the investigation on Didi Chuxing will be announced soon.
According to China’s cyber investigation regulations, normal investigations are conducted within 60 days.
Chinese authorities have put all-out pressure on Didi Chuxing to improve driver treatment by distributing more profits to drivers on the platform.
In the end, Didi Chuxing announced in early January a plan to abolish the NASDAQ listing and list it again on the Hong Kong stock market.
Didi Chuxing is a company that focuses on vehicle sharing services that distribute affiliated taxis or private cars closest to each other through mobile apps, and is called the “Chinese version of Uber.”
Didi Chuxing, which was jointly founded in 2012 by CEO Chung Wei and Jang Bo, once had a nearly 90% share in the Chinese vehicle call service market.
In its heyday, the number of drivers who provide Didi Chuxing’s vehicle call service reached 13 million, and 493 million people used the service.
Didi Chuxing reportedly reduced sales and market share since the second half of last year due to the authorities’ high-intensity regulations, and reduced executives and employees by about 20%.
