Cowed by Chinese regulators, Didi plans New York delisting and Hong Kong debut

Ride-hailing giant Didi Global said it will delist from the New York Stock Exchange just five months after its debut and pursue a listing in Hong Kong amid pressure from Chinese regulators

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12/3/2021 1:30:00 PM

Ride-hailing giant Didi Global said it will delist from the New York Stock Exchange just five months after its debut and pursue a listing in Hong Kong amid pressure from Chinese regulators

Just five months after its debut, ride-hailing giant Didi Global said it plans to withdraw from the New York stock exchange and pursue a Hong Kong listing - a stunning volte-face as it bends to Chinese regulators angered by its U.S. IPO .

Its shares soared 15% in pre-market trade as investors bet the movewould appease Beijingand serve as a catalyst for a revival of its business prospects at home.Didi pushed ahead with a $4.4 billion U.S. initial public offering despite being asked to put it on hold while a review of the company's data practices was conducted.

Register now for FREE unlimited access to reuters.comRegisterThe powerful Cyberspace Administration of China (CAC) then quickly ordered app stores to remove 25 of Didi's mobile apps and told the company to stop registering new users, citing national security and the public interest. Didi remains under investigation.

"Following careful research, the company will immediately start delisting on the New York stock exchange and start preparations for listing in Hong Kong," Didi said on its Twitter-like Weibo account on Friday.Didi did not explain its reasons for the plan but said in a separate statement it would organise a shareholder vote at an appropriate time and would ensure its New York-listed stock would be convertible into "freely tradable shares" on another internationally recognised stock exchange. headtopics.com

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Sources have told Reuters that Chinese regulators pressed Didi's top executives to devisea plan to delistfrom the New York Stock Exchange due to concerns about data security.The upending of Didi's New York listing - likely to be a difficult and messy process - illustrates both the huge clout that Chinese regulators possess and their emboldened approach to wielding it. Billionaire Jack Ma also ran afoul of Chinese authorities after blasting the country's regulatory system, leading to the dramatic scuppering of a mega-IPO for Ant Group last year.

The move will also likely further discourage Chinese firms from listing in the United States and could prompt some to reconsider their status as U.S. publicly traded companies."Chinese ADRs face increasing regulatory challenges from both U.S. and Chinese authorities. For most companies, it will be like walking on eggshells trying to please both sides. Delisting will only make things simpler," said Wang Qi, CEO at fund manager MegaTrust Investment (HK).

Didi is planning to proceed with a Hong Kong listing soon and is not looking at being taken private, sources with knowledge of the matter told Reuters.It aims to complete a dual primary listing in Hong Kong in the next three months, and under pressure from Beijing delist from New York by June 2022, said one of the sources.

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A sign of Chinese ride-hailing service Didi is seen on its headquarters in Beijing, China July 5, 2021. REUTERS/Tingshu WangThe sources were not authorised to talk to media and declined to be identified. Didi did not immediately respond to Reuters requests for comment and the CAC has yet to comment on its announcement. headtopics.com

Reuters Graphics Reuters GraphicsHONG KONG HURDLESListing in Hong Kong might, however, prove complicated, particularly in a tight three-month timeframe given Didi's history of compliance problems and the scrutiny it has faced over unlicensed vehicles and part-time drivers.

Only20%-30% of Didi's core-ride hailing businessin China is fully compliant with regulations requiring three permits relating to the provision of ride-hailing services, vehicle licensing and drivers' licenses, sources have previously said.Didi said in its IPO prospectus it had obtained ride-hailing permits for cities that collectively accounted for the majority of its total rides. It has not responded to further queries about permits.

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Those problems had been the main obstacle to the company conducting an IPO in Hong Kong earlier and it remains to be seen whether the bourse will approve it now, sources with knowledge of the matter said on Friday."I don't think Didi qualifies to be listed anywhere before it ... sets up effective protocols to manage and ensure the drivers' responsibility and benefits," said Nan Li, associate professor for finance at Shanghai Jiao Tong University.

The Hong Kong bourse(0388.HK)does not comment on individual companies, a spokesperson said. Shares in the exchange, however, jumped 4% on prospects of a Didi listing.Sources have also told Reuters that Didi is preparing to relaunch its apps in China by the end of the year in anticipation that Beijing's cybersecurity investigation into the company would be wrapped up by then. headtopics.com

Didi provided 25 million rides a day in China, according to first-quarter data. It made its New York debut on June 30 at $14 per American Depositary Share, but those shares have since slid 44% until Thursday's close, valuing it at $37.6 billion.SoftBank's Vision Fund owns 21.5% of Didi, followed by Uber Technologies Inc

with 12.8%, according to a filing in June by Didi.Register now for FREE unlimited access to reuters.comRegisterReporting by Julie Zhu, Kane Wu, Cheng Leng and Zoey Zhang; Additional reporting by Brenda Goh, Josh Horwitz, Alun John and Sayantani Ghosh; Editing by Sumeet Chatterjee and Edwina Gibbs

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Didi Global Plans to Delist From New York Stock ExchangeDidi Global plans to delist its shares in the U.S. and pursue a listing in Hong Kong, a dramatic reversal just months after the Chinese ride-hailing group’s ill-fated initial public offering in New York. Learned the lesson hard way, NEVER invest in Chinese companies..f Xi So, do I lose my money? I bought this damn thing early, since the IPO $16. Where’s my money? ..but ,China is the enemy.

China’s Didi To Delist From New York Following Pressure From BeijingThe ride hailing-giant said that it plans to pursue a public listing in Hong Kong in the future. Well then! good car

Didi says it will delist from the New York Stock Exchange and prepare to list in Hong KongChinese ride-hailing giant Didi said Friday that it will start delisting from the New York Stock Exchange, and make plans to list in Hong Kong instead. For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to him Arnoldnike93 Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success⚖️ Where is Cramer? Boy oh boy

Didi says it will leave New York 'immediately' and list in Hong Kong, months after disastrous IPODidi said it would 'immediately' start delisting from the New York Stock Exchange and instead prepare to sell shares in Hong Kong, just months after its disastrous IPO . Who cares! Knowing the capricious regulation and the related risks, how any Wall Street fund managers can justify investing in China stock is beyond reason. There is bound to be huge shareolder lawsuits against the funds and fund managers.

China's Didi to leave US stock market amid tech crackdown | AP NewsBEIJING (AP) — Chinese ride-hailing service Didi Global Inc. said Friday it will pull out of the New York Stock Exchange and shift its listing to Hong Kong as the ruling Communist Party tightens control over tech industries.

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