October 7, 2022

Taylor Daily Press

Complete News World

Chinese taxi operator Didi is considering a return to the US stock market

Chinese taxi operator Didi is considering a return to the US stock market

Five months after its launch on the New York Stock Exchange, Chinese taxi operator Didi is considering being listed there. According to the Reuters news agency, Chinese regulators have forced the company to take such drastic action.

Despite having a US IPO five months ago, Didi has nothing but a record year. Like many Chinese technology companies, taxi use continues to face new rules imposed by the authorities. Moreover, the Chinese government is not a big fan of the US IPO.

Chinese regulators are increasing the pressure

Didi advanced with a $ 4.4 billion IPO in the United States, despite being asked to suspend an IPO following an investigation into the company’s data processing. The Taxi App recommended the Cyberspace Administration of China (CAC) App Stores because it did not listen to Chinese officials. Remove Didi’s mobile apps It also told the company to stop registering new users.

Now it looks like China is getting its way, as Didi is considering leaving the US stock market. According to sources from Reuters Chinese regulators pressured Didi to come up with a plan to remove him from the New York Stock Exchange for data security reasons.

“After a careful investigation, the company will immediately begin preparations for delisting from the New York Stock Exchange and listing in Hong Kong,” DT told Weibo, the Chinese alternative to Twitter.

The United States is also imposing restrictions

Didi has not yet commented on the plans, but said in a separate statement that he would arrange for a timely shareholder referendum and ensure that the shares of the company listed in New York are listed and converted into “freely traded shares”. Internationally recognized exchange.

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Didi’s decision could have an impact on other Chinese companies as well. For example, companies that want to list on the US Stock Exchange may not do so now. Companies already listed on the New York Exchange may reevaluate their position as public trading entities in the United States.

Meanwhile, Washington is exploring the possibility of imposing more restrictions on Chinese companies listed on the US Stock Exchange. The US Securities and Exchange Commission (SEC) has finalized rules that would allow foreign equity to be listed if it fails to meet audit requirements.

(mah)