Advertisement
Didi Chuxing
TechBig Tech

Didi Global to vote on US delisting next month, says no new listing plan before NYSE exit

  • Beijing-based firm says it will not apply for another flotation before completing its delisting from the New York Stock Exchange
  • The riding-hailing giant must cooperate further with China’s cybersecurity regulators and conduct rectifications

Reading Time:2 minutes
Why you can trust SCMP
5
Didi’s headquarters in Beijing. The delisting, the cybersecurity investigation and lack of immediate relisting plans could deal a heavy blow to the firm’s value and even undermine investor confidence in Chinese stocks. Photo: Reuters
Yaling Jiang
Shareholders of Didi Global, the Chinese ride-hailing giant under investigation for cybersecurity breaches, are expected to vote to delist from the US at a special meeting on May 23, a move that shows Beijing’s tough regulatory crackdown is still casting a long shadow over the country’s tech sector.
The Beijing-based firm, which was put under investigation days after its US$4.4 billion initial public offering (IPO) on June 30 last year, said in a statement on Saturday that it would not apply for another listing on any other exchange before completing its delisting from the New York Stock Exchange. In a statement issued in December, Didi had said that it would delist from New York and pursue a listing in Hong Kong.

The planned delisting, uncertainties arising from its cybersecurity investigation and the lack of immediate prospects for a relisting, are set to deal a heavy blow to the company’s valuation – and could even undermine investor confidence in Chinese stocks.

The China Securities Regulatory Commission (CSRC), the country’s stock market watchdog, said in a statement issued immediately after Didi’s announcement that the ride-hailing firm’s delisting plan had nothing to do with other US-listed Chinese stocks, and was not related to “the ongoing audit cooperation between China and the US”, in an apparent move to control any spillover damage from Didi’s statement.

According to the Didi statement, it must cooperate further with China’s cybersecurity regulators in the investigation and conduct “rectifications”.

Experts said Didi’s move demonstrates the seriousness the Chinese government attaches to data security and cybersecurity, even if it comes at a huge cost to the operations of business firms.

Advertisement