China ride-hailing giant Didi has begun the process of delisting from the New York Stock Exchange and instead applied for listing in Hong Kong, the company said. announced via a Weibo post on Friday morning.
The verdict came days after Bloomberg informed of The Chinese government had asked Didi to be delisted from the US for security reasons. Didi could not be reached for comment by Nerdshala at the time.
This move is anything but amazing. The SoftBank-backed mobility powerhouse has faced heavy regulatory pressure after it failed to assure Beijing that its data practices were secure ahead of its blockbuster IPO in July.
Over the past few months, China has introduced a series of new data regulations, including rules that will strengthen user privacy protections and restrict cross-border data transfers. a sister executive said before It stored data in China and it was “absolutely not possible” to pass the data to the US, like “many other US-listed Chinese firms”.
Didi’s market cap currently stands at $37.6 billion. Its shares have fallen more than $15 to $7.8 for the first time on Thursday.
more to come…