Didi Global, the Chinese ride-hailing giant whose New York listing triggered cybersecurity investigations by Beijing last summer, urged shareholders to vote at a meeting later this month to delist from the New York Stock Exchange, saying it is necessary to satisfy Chinese authorities. Didi said it “has concluded that it needs to complete the cybersecurity review and rectification in order to resume normal operations”, including restoring its 26 apps in Chinese app stores so that the company can restart new user registrations. If Didi does not delist to complete the rectification process, it “would have a material adverse impact on the company’s ability to conduct normal operations”, it said in a filing by company chairman and CEO Will Cheng Wei to the US Securities and Exchange Commission (SEC) on Wednesday. Didi Global reveals it faces SEC probe over NYSE IPO The statement offered the most detailed account from Didi of the Chinese cybersecurity review, which has been conducted over the last 10 months behind closed doors. Beijing’s probe into Didi, launched two days after its US$4.4 billion IPO in New York, has become a cautionary tale for overseas investors about China tech stocks. Didi closed at US$1.53 on Wednesday, nearly a tenth of its IPO price of US$14. A joint government body led by the Cyberspace Administration of China (CAC), which also includes the Ministry of Public Security and the Ministry of State Security, started its on-site investigation of Didi last July, but the probe has yet to issue any conclusions. Didi said it has to go through the cybersecurity review if it chooses to go public on “another internationally recognised exchange, including the Hong Kong stock exchange”. Following the probe of Didi, Beijing updated regulations to require a cybersecurity review of any company seeking an overseas IPO if it handles the data of more than 1 million Chinese users. Didi said it has made several improvements in cybersecurity, including disclosing personal information collection to users and formulating an internal management mechanism in data security and storage. Didi set up a committee headed by its CEO to oversee the overhaul of its data management practices, the South China Morning Post reported in September. But the company said it “remains uncertain” whether its rectification measures “will satisfy the requirements of the relevant authorities and when it will be able to resume normal operations”. The shareholder vote on delisting is set for May 23. If they do not support the proposed delisting plan, Didi may “give the shareholders more time” to consider it. The company’s plan for a listing in Hong Kong may be on hold indefinitely given regulatory toughness, the Post reported last month. Didi has been in talks with the CAC about a fine and other penalties. In addition to scrutiny from Beijing, Didi revealed earlier this month that it was also facing an investigation from the SEC over its IPO. Regulatory hassles have weakened Didi’s leading position in China’s ride-hailing industry. The company’s order volume plummeted 29 per cent between last June and March, according to a calculation of monthly growth rate figures published by the transport ministry. Smaller rivals Cao Cao Mobility, incubated by carmaker Geely, and T3, backed by state-owned companies, saw orders grow 34 and 104 per cent, respectively, in the same period. Didi has also reduced expansion efforts overseas. It has told staff that plans for major international expansion are on hold until at least 2025, and Didi’s UK workforce has been reduced by half, The Guardian reported on Wednesday.