Stock Groups

Didi Falls as China Asks Ride-Hailing Firm to Delist From US -Breaking

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com – ADRs of Didi Global (NYSE:) plunged more than 7% in Friday’s premarket trading as authorities in China asked the ride-hailing firm to delist from the NYSE because of security fears.

According to Bloomberg, Didi was directed by the Cyberspace Administration of China (the agency that is responsible for data security within the country), to come up with precise details.

According to the report, proposals being considered include a core shareholder buyout or a Hong Kong stock float that is followed by an American delisting.

The delisting is likely to happen at Didi’s IPO issue price of $14 though there is no final word yet on the plans, according to Bloomberg’s sources.

Didi was listed on the NYSE and has been trading below its $14 issue price for most of its life. Stock closed Wednesday at $8.11 On Thursday, markets were closed due to Thanksgiving.

Chinese authorities had already warned that this company would be subject to severe sanctions if it did not heed their warnings and delay the IPO.

China’s authorities are concerned about data-rich US companies that have been listed there. The U.S. has strict rules on data disclosure in order to protect investors. Experts in China believe this policy is counter to China’s interests as the vast majority of the data belongs to them.

 

 

 

 

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