Chinese ride-hailing app, Didi, has now confirmed that it will delist from the New York Stock Exchange or the NYSE in the United States as it prepares to move its listing to Hong Kong.
This photo taken on September 4, 2018 shows a logo of Didi Chuxing displayed on a building in Hangzhou in China's eastern Zhejiang province. - Chinese ride-hailing giant Didi Chuxing said on September 4 it would halt most late-night ride services for a week as it tries to reassure the public following the rape and murder of a passenger.
Chinese Ride-Hailing App Didi Confirms Leaving NYSE
As per the report by CNBC, Didi announced its plans on Friday, Dec. 3, noting that the Chinese tech giant has come up with the decision after carefully thinking about it.
The Chinese tech firm said in a statement that the board of directors of Didi has already authorized the firm to undergo the process of delisting the American Depositary Shares or the ADS of the ride-hailing app, according to the news story by Business Insider.
To be more precise, Didi went on to explain that the ADS from the New York Stock Exchange will then be "convertible into freely tradable shares of the Company on another internally recognized stock exchange at the election of ADS holders.
Meanwhile, the regional head of Asia at Cambridge Associates, Aaron Costello, told CNBC in the same report that the US-listed tech firms are bound to relist in either the mainland of Hong Kong--similar to the move of Didi.
China Asks Didi to Delist from US Stock Exchange
It shortly comes after China's regulator asked the ride-hailing app to start forming its plan to delist from the stock exchange of the United States.
In this picture taken on October 18, 2018, a driver working for ride-sharing company Didi follows a map on his smartphone to bring a customer to his destination in Beijing. - Didi is a popular taxi and ride-sharing service in China that is operated via a smartphone app.
The Chinese regulators, known as the Cyberspace Administration of China, were reportedly asking Didi to leave the NYSE. It comes as they were concerned about the leakage of sensitive data in the ride-hailing app.
After China asked Didi to delist from the NYSE, the shares of the Chinese tech giant have steeply plunged to about 44%, closing at $7.80 on Dec. 2, Thursday.
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Didi and its US IPO
Even since the Chinese ride-hailing app went on to push through with its New York listing back in June, China has been opposing its decision.
The Cyberspace Administration of China or the CAC previously urged the ride-hailing app to postpone its plans to list itself in the US stock exchange while its data practices are still being investigated.
However, Didi did not listen to China's plea back then.
In fact, Didi, which is dubbed as the Chinese version of Uber, even marked the biggest IPO of 2021 back on June 28.
Later on, the CAC learned after investigating the data collection process of Didi that it had collected its users' personal data illegally.
China then ordered app stores in the country to ban and remove all of the mobile apps that are being operated by the ride-hailing tech giant, which is 25 in total.
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Written by Teejay Boris
