Chinese Didi Chuxing to Delist from US Stock Market Around 12th-13th

Submission of Delisting Application to U.S. SEC on the 2nd
Relisting Discussed on Hong Kong and Other Chinese Stock Exchanges

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Didi Chuxing, the Chinese version of Uber, will soon be delisted from the US stock market. This comes one year after it ignored an implicit warning from Chinese authorities in June last year and pushed ahead with its US listing, only to face regulatory crackdowns from the authorities.

Photo by Global Times capture

On the 6th (US time), Didi Chuxing announced that it filed an application for delisting with the US Securities and Exchange Commission (SEC) on the 2nd, and that its listing on the New York Stock Exchange will be removed about 10 days after the application date.

Didi Chuxing had decided to delist from the New York Stock Exchange through its board of directors last December. The delisting proposal was approved with 64% of votes at an extraordinary general meeting held on the 23rd of last month.

Didi Chuxing was abruptly listed on the New York Stock Exchange on June 30, 2021, the day before the 100th anniversary of the founding of the Chinese Communist Party. Prior to the listing, Chinese authorities reportedly expressed negative opinions about Didi Chuxing’s US listing, considering US-China tensions and other factors.

Nevertheless, when Didi Chuxing pushed ahead with the US listing, Chinese authorities immediately launched an unprecedented internet security review against the company and simultaneously banned app downloads until the review was completed, blocking the influx of new customers. This was effectively a punitive regulatory measure for ignoring the authorities’ opinions and proceeding with the listing.

Subsequently, Chinese authorities codified regulations related to overseas listings, effectively turning the US listings of sensitive internet companies like Didi Chuxing into a permit-based system, and the active US listings of Chinese companies have effectively come to a halt.

Some in the market believe that, with the internet security review?which could lead to penalties beyond fines, including executive punishments?not yet concluded, resolving the fundamental issue of being targeted for US listing by the authorities will ease the uncertainties surrounding Didi Chuxing.

The Wall Street Journal (WSJ), citing sources, reported that Chinese authorities are expected to lift the ban on Didi Chuxing app downloads as early as this week, triggered by this delisting. It is anticipated that Didi Chuxing will relist on the Hong Kong Stock Exchange, China’s home market, after the internet security review is officially completed.

In this announcement, Didi Chuxing mentioned, "After resuming normal operations, we may pursue listing on other stock exchanges."

This content was produced with the assistance of AI translation services.