Friday, December 03, 2021
Just five months after going public
China’s Uber competitor is leaving the US stock exchange
Shortly after the US Securities and Exchange Commission tightened the rules for foreign companies, the Chinese transport service provider Didi withdrew from the New York Stock Exchange. The political leadership in Beijing is putting pressure on the company.
The Chinese transportation company Didi announced its immediate withdrawal from the New York Stock Exchange just five months after going public. “After careful consideration, the company has started the process of giving up listing on the New York Stock Exchange with immediate effect,” said Didi Chuxing. Instead, a listing on the Hong Kong stock exchange is being prepared.
Didi, who dominates the market for transport service providers in its home market of China, was listed on the New York Stock Exchange at the end of June. At the time, the company had earned $ 4.4 billion. The IPO had, however, drawn the displeasure of the political leadership in Beijing. Beijing did not approve of listing abroad amid high tensions with Washington. The Chinese authorities launched an investigation against Didi on the grounds that sensitive data could be transferred to the USA.
Didi’s share value has lost 45 percent since it went public. The withdrawal also came just hours after stricter rules were passed in the US for foreign companies listed there. The US Securities and Exchange Commission is now authorized to remove companies from the stock exchange that do not have their financial statements audited by an approved company. Companies in mainland China and Hong Kong typically do not submit to this procedure.