Didi, China’s version of Uber, saw its shares plunge more than 22% after it announced it would delist its shares from the New York Stock Exchange (NYSE).
More on Didi🤔 Didi’s listing was just six months ago, as it raised $4.4 billion in a highly anticipated IPO on the NYSE back in June 2021. Within days of the IPO Beijing announced a crackdown on technology companies listing overseas, leading to its removal from the app store & sending its stock into a downward trend that it never rebounded from.
More details🧐 Earlier on Thursday the U.S market revealed tough new rules for Chinese firms that list in the U.S. Didi announced it would delist the following day. “Following careful research, the company will immediately start delisting on the NYSE & start preparations for listing in Hong Kong.”
Why is this important🤔 Chinese technology companies have been under scrutiny at home & abroad. But Didi’s decision was immediate, sending strong signals that Chinese companies’ need for Wall Street funding is decreasing. There has already been concern about Alibaba delisting, & now Didi has actually gone & done it.