FAST FIVE: Didi Shares Jump After Company Unveils US Delisting, Plans For Hong Kong Debut 

Published by on

shares trading in New York jumped as much as 14% premarket after it said it would begin to delist from US stock exchanges and list in Hong Kong.  According to a company press release, the ride-hailing giant's board of directors “has authorized and supports the Company to undertake the necessary procedures and file the relevant application(s) for the delisting of the Company's ADSs from the New York Stock Exchange, while ensuring that ADSs will be convertible into freely tradable shares of the Company on another internationally recognized stock exchange at the election of ADS holders.” “The Board has also authorized the Company to pursue a listing of its Class A ordinary shares on the Main Board of the Hong Kong Stock Exchange,” the press release continued.  The move comes after the Cyberspace Administration of China requested Didi's top executives to develop a plan to delist from US stock exchanges last week due to concerns about leakage of sensitive information.  A delisting from the NYSE could spell trouble for US-listed Chinese firms as Sino-US tensions heat up.

This allowed them to raise money from overseas investors by bypassing Beijing's restrictions on foreign investment.

We noted in early September that Beijing would soon close the loophole.   The prospect of banning VIEs is part of a yearlong campaign to curb the power and address data security concerns of China's internet sector.

And just yesterday, the SEC shared its final plan for forcing Chinese firms to delist from US exchanges should they refuse to open their books and abide by stringent American auditing standards.

— Matthew Kanterman and Tiffany Tam, analysts It appears that Didi will now serve as the blueprint for other US-listed Chinese companies to quietly pack their bags and relist in Hong Kong.  Tyler Durden Fri, 12/03/2021 – 07:09.

Categories: ZH