Chinese Regulator Nudges Didi to Delist From NYSE

Didi, a ride-sharing company based in China has entered the US stock market this year. This triggered the Chinese government as it’s now pushing Didi to delist from NYSE and come back.

It’s cited that the Chinese government is fearing Didi’s sensitive data sharing with American firms, which could later impact China sometime. So, it’s now offering recommending Didi to delist, by offering a few alternatives.

China Nudges Didi Again

Chinese Regulator Nudges Didi to Delist From NYSE

Since last year, everyone knew that an informal cold war is happening between China and the US. There have been a lot of sanctions laid against each other, and companies being affected due to them.

Yet, Didi, a ride-hailing company similar to Uber has dared to step up and list its shares in the US stock market. Though this triggered China a lot of times, even conducting frequent inspections at Didi’s offices, Didi proceeded with listing in the New York Stock Exchange this year.

The listing is one of a kind, breaking Alibaba’s record of largest IPO of a Chinese company in NYSE since 2014. And with full support from Softbank and Uber Technologies, the two major shareholders, Didi went on to perform well in foreign countries.

As this is still triggering the Chinese government, it’s now nudging Didi again to withdraw from the US stock market, by offering two alternatives to satisfy the company. One is to list the Didi’s delisted US shares in the Hong Kong stock exchange, with, of course, discounted price from what’s actually trading from.

And the second, by privatizing it. Beijing municipal corporation has earlier come forward to invest in Didi, so the authority of control can still remain with the home government. What Didi is going to do isn’t unknown yet, but experts say this deal will eventually be dropped, and let Didi continue as usual.

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