DIDI Stock

Didi, the Chinese ride-hailing colossus, announced that it no longer floats on the New York Stock Exchange and could trade in Hong Kong.
It follows only about a year since the tech behemoth came out publicly in the United States. Didi stated that they made her decision after even a lot of thought.
Didi’s shares have plunged 44% since its IPO on June 30 and are now worth $7.80.
Following allegations that Chinese regulators had instructed the company’s leadership to devise a plan to delist from the United States, the stock dropped dramatically last week. According to reports, regulators want Didi, the Chinese ride-hailing behemoth, delisted from the New York Stock Exchange due to worries over data leaking.
According to FactSet, the delisting jeopardizes SoftBank and Uber’s significant interests in Didi, which together own more than 30% of the company. On Friday, SoftBank’s Japanese stock fell 2.5 percent.
Didi gets said angered regulators by proceeding with an IPO without resolving unresolved cybersecurity vulnerabilities that the authorities wanted to address. Didi is China’s most popular ride-hailing service, with a wealth of information about travel routes and customers.
After the news emerged, Aaron Costello, regional head of Asia at Cambridge Associates, stated, “I think China has made it clear that they no longer want technology businesses listing over in US markets since it takes them under the control of US regulators.”
“In our opinion, practically all of these U.S.-listed IT companies will relist in Hong Kong or on the mainland,” he explained.”
The Hong Kong Exchange stated it did not comment on individual firms when asked about Didi’s potential Hong Kong listing.
In the last year, China has tightened its grip on its tech behemoths. Late last year, Ant Group’s IPO got halted while regulators enacted a slew of new restrictions ranging from antitrust for internet platforms to a strengthened data protection law. Antitrust fines have also to get levied against e-commerce behemoth Alibaba and meal delivery service Meituan.
Didi’s move comes less than 24 hours after the Securities and Exchange Commission of the United States finalized guidelines allowing it to delist foreign companies that do not meet audit criteria.
The guidelines would enable it to implement the United States Holding Foreign Companies Accountable Act, which was passed in 2020 after Chinese regulators rebuffed requests from the Public Company Accounting Oversight Board, established in 2002 to oversee public company audits.
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By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

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