The Chinese ride-hailing firm, Didi Chuxing, has said that it will start de-listing from the New York Stock Exchange (NYSE) and move to list in Hong Kong instead. The de-listing comes after Chinese regulators asked the firm to de-list over concerns about the leakage of sensitive data; the country passed a law earlier this year to tighten up data protection so that it can be taken more seriously when compared to other places such as the EU which has GDPR.
Didi Chuxing’s stint on the NYSE has only lasted about half a year. Its listing was hotly anticipated by pundits who said it could be the biggest IPO anywhere in the world and was predicted to raise $10 billion. This estimate was dampened, however, with the firm raising $4.4 billion.
The share price of Didi has declined by 44% since its IPO and closed at $7.80 on Thursday. It’ll be of some concern to Uber and SoftBank which, together, control 30% of Didi stock. This news has had an impact on SoftBank’s shares too as they declined 2.5% on Friday.
It should be expected that more Chinese tech firms will de-list from American markets. The Chinese government is concerned about them listing in the U.S. because it brings them under the jurisdiction of U.S. regulators.
Source: CNBC