DiDi Global, a Chinese ride-hailing firm, announced that it would be delisting from the New York Stock Exchange last week. The news of DIDI’s delisting heightened investor concerns about other U.S.-listed Chinese stocks, and the prices of shares of Chinese electric vehicle stocks NIO (NIO), XPeng (XPEV), and Li Auto (LI) declined in the wake of DIDI’s delisting announcement. Investors are advised not to invest in these companies due to their poor growth prospects. Read on.Beijing-based ride-hailing giant DiDi Global Inc. (DIDI) declared last week that it would delist from the New York Stock Exchange “immediately” and begin preparations for a separate listing in Hong Kong. Consequently, the U.S. shares will be converted into “freely tradable shares” on another international exchange. DIDI’s shares dropped sharply following the announcement.

With DIDI’s delisting, the decades-long, trillion-dollar relationship between China and Wall Street may be coming to an end. This move has sparked speculation about Chinese EV stock listing moving to Hong Kong. U.S. Investors would then be able trade ADRs with Hong Kong-listed underlying stock.

We believe that investors would be better advised to avoid the Chinese electric vehicle stocks NIO Inc., XPeng Inc. and Li Auto Inc. The shares of these companies plunged last week on the news of DIDI’s delisting.

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