DiDi to delist from NYSE under Chinese govt pressure

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Chinese ride-ola giant DiDi said it would be delisted from the New York Stock Exchange following the Chinese government’s crackdown on foreign listings.

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why it matters: It shows how geopolitical tensions are rising in the capital markets.

Backstory: DiDi isn’t just China’s Uber. It is the company that beat Uber in China, buying the US company’s business at a valuation of $73 billion before going public last June.

  • What was not known at the time was that Chinese officials had asked DIDI to postpone the IPO, over concerns that sensitive data could fall into foreign hands.
  • Just days after its stock began trading, China banned DiDi from the App Store. Last week, Bloomberg informed of that Chinese officials had recently asked the company to prepare a plan to delist it from the US
  • Its current market cap is $37 billion.
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Too: US securities regulator today final rule To forcibly remove Chinese companies that fail to comply with certain auditing requirements, although this does not apply to DiDi.

what next: The company said in a Weibo post that it plans to re-list its shares in Hong Kong. A spokesperson for the NYSE did not return a request for comment.

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Bottom-line: DiDi is delisting under pressure.

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