“The crackdown started with Ant’s botched IPO. It will now set a precedent for other US listed companies, especially those with data concerns. “The listing of Didi was largely expected given the crackdown post its IPO. “I don’t think Didi qualifies to be listed anywhere before it separates the data platform services with financial services, and sets up an effective protocol to manage and ensure the drives’ responsibility and benefits.” JUSTIN TANG, HEAD OF ASIAN RESEARCH AT UNITED FIRST PARTNERS, SINGAPORE: And the inherent problems of the share-riding due to the fact there is no appropriate regulation of the bad behavior of the drivers. Didi also embedded financial services on their platform, they withheld the payment to the drivers, charge high fees for drivers, make loans with high interest rates etc. There are other issues related to Didi in addition to the data security. This is the only way that Didi can survive, and this is maybe a good thing for the investors in the US market. Delisting will only make things simpler.” NAN LI, ASSOCIATE PROFESSOR, FINANCE AT SHANGHAI JIAOTONG UNIVERSITY, SHANGHAI:
For most companies it will be like walking on eggshells trying to please both sides. “Chinese ADRs face increasing regulatory challenges from both US and Chinese authorities. Apparently, the Chinese government hopes companies can choose Hong Kong as listing venue.” WANG QI, CEO AT FUND MANAGER MEGATRUST INVESTMENT (HK), HONG KONG: “From a political perspective, China and the US have so far failed to reach an agreement on supervising US-listed firms. “Technically speaking, Didi’s US listing was not compliant with Chinese data security regulations. “Beijing is also sending a warning to the entire internet sector in China to be ready to face more regulations and is likely to keep foreign investors away from Chinese tech stocks for some time.” ZHAN KAI, LAWYER AT EAST & CONCORD PARTNERS, SHANGHAI: However, it may not be able to relist its shares in HK at the same price (rather at a lower price) given there will be stringent control by the state over its use of user’s personal data (which will place it at a disadvantage) and location related issues such as liquidity, etc.
The company is already facing class action lawsuit in the US, and we think Didi will buy back its shares at the same IPO price of US$14 per share. “As we expected, Didi will first delist its shares from the NYSE and start filing for listing on HKEX. SHIFARA SAMSUDEEN, LIGHTSTREAM RESEARCH ANALYST, WHO PUBLISHES ON RESEARCH PLATFORM SMARTKARMA: HONG KONG (Reuters) – Didi Global said on Friday it will delist from the New York stock exchange and pursue a listing in Hong Kong, the latest development after it ran afoul of Chinese regulators by pushing ahead with its $4.4 billion US IPO in July.ĭidi’s decision to delist in the US comes as a deepening regulatory crackdown wiped billions of dollars off the ride-hailing giant’s valuation.įollowing are reactions to ride-hailing giant Didi Global’s decision to delist from the New York stock exchange and pursue a listing in Hong Kong, succumbing to pressure from Chinese regulators concerned about data security. FILE PHOTO: The logo for Chinese ride-hailing company Didi Global Inc is pictured at the New York Stock Exchange (NYSE) floor in New York City, U.S., June 30, 2021.
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