Didi Global announced that it would delist from the New York Stock Exchange and look for a listing in Hong Kong after they had received significant pressure from Chinese regulators concerning data security.
Didi Global ran afoul of Chinese authorities by pushing ahead with its $4.4B US IPO in July even though they were asked to put it on hold while a review of its data practices was conducted.
The powerful Cyberspace Administration of China (CAC) then quickly ordered application stores to remove 25 mobile apps operated by Didi Global and also told the company to stop registering new users, citing national security and the public interest. Didi remains under investigation.
Didi Global Posted How It Would Switch To The Hong Kong Exchange
Didi posted on its Weibo account, “Following careful research, the company will immediately start delisting on the New York stock exchange and start preparations for listing in Hong Kong.” It was later posted in English and added that the board had approved this move.
It said that the company would organize a meeting for the shareholders and vote on this matter at a proper time in the future, following necessary procedures.
Sources have told Reuters that Chinese regulators pressed Didi Global’s top executives to devise a plan to delist from the New York Stock Exchange due to concerns about data security. Sources have also told that Didi was preparing to relaunch its applications in the country by the end of the year in the hope that China’s cybersecurity investigations would be done by then.
The CAC did not respond to any requests made for comments on Didi Global’s plans to delist itself from New York.