Embattled ride-hailing company Didi Chuxing has announced it will delist from the New York Stock Exchange under pressure from Chinese regulators, reports the Financial Times. The company wrote on its official Weibo account on Friday that it would begin the process of delisting and prepare to list in Hong Kong.
Didi said in a separate statement its board had authorized the delisting in New York of its American depository shares “while ensuring that ADSs will be convertible into freely tradable shares of the Company on another internationally recognized stock exchange.”
Didi’s shares fell 15% in early trading in New York. Hong Kong’s Hang Seng Tech index fell as much as 2.7% on Friday following the news. E-commerce group Alibaba dropped as much as 5.4% and internet group Tencent lost as much as 3.3%.
Didi launched its $4.4bn New York initial public offering in June, making it the biggest listing by a Chinese company in the US since Alibaba in 2014. Days later, Chinese regulators ordered Didi’s app to be taken off domestic app stores. The company was also banned from signing up new users and subjected to a wide-ranging government investigation into its cyber security practices.
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