China’s Didi will delist from New York and list in Hong Kong

China’s ride-hailing group Didi Chuxing, which has been hit by Beijing’s regulatory authorities against technology companies, said it will delist from the New York Stock Exchange to accelerate the decoupling of China and the US capital market.

The company wrote on its official Weibo on Friday that it will start the delisting process and prepare to list in Hong Kong.

The company said that its board of directors has authorized New York to delist its American depositary shares, “at the same time ensuring that American depositary receipts can be converted into freely tradable shares of the company on another internationally recognized stock exchange.”

After the news, the Hong Kong Hang Seng Technology Index, which tracks China’s 30 largest technology companies, fell 2.4% on Friday. E-commerce group Alibaba fell 5.3%, food delivery service Meituan fell 4.8%, and Internet group Tencent fell 3.2%.

Regulator ordered Didi’s app Remove domestic app stores In July, just a few days after the ride-hailing group raised $4.4 billion in the largest Chinese IPO in the United States since Alibaba in 2014.The company also Prohibit registering new users.

The IPO was completed a few days before the celebration of the founding of the Communist Party of China Centennial, Angered party and government officials who believed that the organization had Ignore their concerns It is related to its national security and its large number of maps and other sensitive data.

Didi goes public in New York Long-term blow Regarding the dominance of China’s largest technology group.The regulatory attack began in November 2020, when President Xi Jinping Order to stop at the last minute Ma Yun’s financial technology platform Ant Group was listed in Shanghai and Hong Kong.

Jack Ma, once China’s richest and most famous entrepreneur, criticized China’s financial regulators a few weeks before the planned IPO, angering Xi Jinping and other officials.

Since the failure of the listing, Jack Ma, who also founded the e-commerce platform Alibaba, has almost Disappear from public view.

Didi’s eager delisting occurred before the end of the six-month lock-up period at the end of December, which would allow company executives and almost all shareholders to start selling shares in New York.

“The government can order certain things without knowing how complicated things are,” said a Beijing lawyer who believes that Didi executives may need to contribute their shares to make such a transaction feasible.

Didi said that in the future, shareholders will vote on the matter.

Additional reporting by Emma Zhou in Beijing and William Langley in Hong Kong

#techAsia Communication

An important guide to the billions of dollars you have created and lost in the Asia Tech world.A selection of exclusive news, clear analysis, intelligent data, and the latest technological craze from FT and Nikkei

Sign up here with one click

Source link

Leave a Reply

Your email address will not be published.