Just days after Didi debuted on Wall Street last summer, Chinese authorities service ban
The country’s app store has launched a cybersecurity investigation into the company. The investigation made the company a poster for Beijing’s crackdown on tech companies and blew tens of billions of dollars in market cap.
Didi’s worries culminated in December when he said he would leave the US stock market for no reason. The move was widely viewed as an attempt to appease Chinese officials. was unhappy
With methods published abroad.
) will hold an extraordinary general meeting in Beijing on Monday evening to formalize the withdrawal process from Wall Street. Some of Asia’s top tech investors are Didi’s shareholders, including: softbank (SFTBF)
And Tencent (TCEHY)
Then the Chinese company will be able to go ahead with its listing plans.
hong kong stock, presentation
late last year. It has previously stated that it will not go public on any other market until its withdrawal from the NYSE is complete.
Didi said the decision was “voluntary,” according to Bernstein analyst Cherry Leung, but the company “tacitly indicates that the delisting is being driven by an ongoing cybersecurity review.”
In a report last week, she wrote, “Didi would need to be delisted in the US to cooperate with Chinese regulators’ review.”
Didi is also under investigation in the United States. Earlier this month, Didi revealed that a bogus IPO was being investigated by the Securities and Exchange Commission (SEC).
The company’s stock has plummeted nearly 70% so far this year.
“The company is fully cooperating with China’s cybersecurity review,” the company said in a statement in April.