Didi will therefore only have remained on the New York Stock Exchange for six months! The Chinese Uber confirmed on December 3 that it will initiate procedures to withdraw from the east coast of the United States to be closer to China, in the Hong Kong market. The company had to give in to Beijing.
The love story between Chinese tech and Wall Street is coming to an end
In a message posted on Weibo, the Chinese social network equivalent to Twitter, the company explained, “ After extensive research, the company will immediately begin to retire from the New York Stock Exchange and prepare for its Hong Kong listing. ».
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Didi’s board of directors has already approved the decision and “ the company will hold a shareholders’ meeting to vote on the above matter at an appropriate time in the future, following the necessary procedures ».
Didi went public in New York on June 30 against Beijing’s advice. Immediately, an investigation was launched against the company by the Cyberspace Administration of China. 25 Didi applications were deleted in the process and no new users are allowed on its remaining platforms.
China justified this decision on grounds of national security and public interest, mainly in connection with the security of Didi’s data. In the United States, a law was passed in 2020 to allow U.S. authorities to inspect the accounts of Chinese companies listed in the United States. New rules were adopted in this regard on December 2 by the United States Securities and Exchange Commission.
the New York Times analyzes the situation as the end of three decades of fusional relationship between Chinese Tech and Wall Street. China, by its decision against Didi and its regulatory plans to block the access of its companies to New York, shows that it no longer needs American investors. A large number of companies from the Middle Empire are still present in the United States, but for how long?
Didi’s landing in Hong Kong is not easy
For Didi the return to the shores of the Pacific promises to be complicated. The time when the company raised $ 4.4 billion is already long gone. The price of its share, fixed at 14 dollars on its arrival in New York to fall 44%. To leave, the Chinese Uber may have to buy back its shares at the original price to avoid lawsuits.
Arrival in Hong Kong itself is not guaranteed. Didi drags its history of non-compliance with Chinese regulations. According to estimates relayed by Reuters, only 20% to 30% of its activities are in the nails.
The approval of the Hong Kong stock exchange is not acquired in advance, above all, Didi gives himself three months to disembark in the city, an extremely short deadline. The departure from New York is expected for June 2022. By then, Didi hopes that the cybersecurity investigation conducted by Beijing will be completed.