A mobile phone shows the interface of Didi’s APP in Yichang, Hubei province, China, July 4, 2021.
Costfoto | Barcroft Media | Getty Images
Chinese ride-hailing giant Didi said Friday that it will start delisting from the New York Stock Exchange, and make plans to list in Hong Kong instead.
Didi said it reached that decision after careful consideration.
Shares of Didi plunged last week after reports that Chinese regulators have asked the firm’s executives to formulate a plan to delist from the U.S. Regulators reportedly want Chinese ride-hailing giant Didi to delist from the New York Stock Exchange because of concerns about leakage of sensitive data.
Didi reportedly drew the ire of regulators when it pushed ahead with an IPO without resolving outstanding cybersecurity issues that the authorities wanted solved. Didi is China’s largest ride-hailing app and holds lots of data on travel routes and users.
The tech giant first listed in the U.S. less than six months ago — on June 30.
“I think China has made it clear they no longer want technology companies listing over in U.S. markets, because it brings them under the jurisdiction of U.S. regulators,” Aaron Costello, regional head of Asia at Cambridge Associates, said Friday after the news broke.
“So our view has been that almost all of these U.S.-listed tech companies will relist either Hong Kong or the mainland,” he told CNBC’s “Street Signs Asia.”
This is breaking news, please check back for updates.