Didi, a Technology company, known as the Chinese Uber, announced its plans to withdraw from the New York Stock Exchange. And Didi, giant china app, want to prepare and moving their new share offering on the trading floor of Hong Kong after months of tensions with the Chinese authorities because of its debut on Wall Street.
In a statement published on its website, the Company assures its board of directors has approved the decision. It will later call a meeting of shareholders to vote on this proposal. The one that contemplates withdrawing the titles from the New York stock market makes them freely convert them into shares. Such shares are the Company’s negotiable assets in another internationally recognized stock market.
They also authorized the board to initiate the necessary processes to opt for another IPO. Of course, this time process would take place in the Hong Kong market, and several large Chinese technology companies such as Baidu or Trip.com will attend. That is due to fears that the United States will take measures such as your exclusion from the stock markets of the North American country.
Didi specifies that they have decided after a careful study. This china giant app, Didi will begin “immediately” with the process of leaving Wall Street and will plan to moving to Hong Kong in another brief statement published through his official Weibo account, which is equivalent to Chinese Twitter.
There were rumors about the Company’s future on the New York stock market in July. The news was making headlines in the international press. However, the Company denied that it was planning to go public.
Didi expanded their business in New York on June 30, grossing about $ 4.4 billion and putting its market valuation at about $ 80 billion.
The Chinese authorities wanted to probe into the cyber security issue. So they announced an investigation against the Company. They withdrew both the Didi app and 25 others linked to its Company of Chinese virtual stores, prohibiting them from registering new users. However, the value of its shares has plummeted by almost 45% since then, just two days later.
According to the American newspaper, Didi would have gone ahead with his plans to go public in New York by ignoring requests from the Chinese government to postpone the operation.
The stated objective was to prevent risks to national security and protect the general interest. Though it was so, Experts quoted the statement. By the state press, they spoke then of a “knock” for the country’s firms to prioritize China’s national security when planning to capture funds in areas that may threaten it.”
Shortly after starting the investigations against Didi, Beijing announced similar investigations against other companies that had a similar business model in common. The fact was that they had all gone public in the United States in the previous months.
In cases similar to Didi, state media pointed at the large amounts of data relating to national transport infrastructures or the flows of people and vehicles which drive shared transport applications.
The Company promised to cooperate with the investigations and rectify their problems. However, it warned that the measures taken by the authorities could undermine its revenue in China.
The US stock regulator tightened the requirements for Chinese firms in the Didi case. The Chinese firms want to go public on Wall Street, based on the demands such as explicitly clarifying to investors. Whether or not they have received permission from the Chinese government to list on the markets Americans, this happened.