‘Chinese Uber’ Didi confirms Wall Street exit

BEIJING, 24 May 2022:

Ride hailing app firm Didi, dubbed the “Chinese Uber,” yesterday announced its decision to stop trading on Wall Street in June after the move gained support from its shareholders.

The company was listed on the US market a year ago despite apparent opposition from the Chinese authorities.

The company, at the extraordinary shareholders’ meeting held yesterday in Beijing, said it secured more than 96% votes in favour of the proposal to leave the New York market.

The decision will be formally conveyed to the relevant authorities around June 2, 10 days after which its exit is expected to be completed.

The tech form entered the New York stock market in June last year despite apparent opposition from the Chinese government, raising some US$4.4 billion – which put its market value at about US$80 billion.

However, just two days later, the Chinese authorities opened a cyber-security investigation – still ongoing – against Didi, prohibiting both the download of his applications and the registration of new users in the country.

In December, the company announced plans to withdraw from the US market and prepare for a fresh listing in the Hong Kong market, which is not expected to happen before it exits Wall Street.

Didi had then said securities withdrawn from the New York stock exchange would be convertible to freely traded shares of the company in other internationally recognised stock markets.

The crisis involving Didi – whose stocks have fallen by more than 90% since its IPO – is a result of Beijing’s digital regulatory campaign, which has particularly affected renowned companies including the e-commerce giant Alibaba.