Embattled Chinese ride-hailing firm Didi Global’s shareholders are expected to vote to delist in the US at a meeting next month, a move exemplifying the continued effects of Beijing’s regulatory crackdown on the tech sector, reports the South China Morning Post. The firm, which was put under investigation days after its $4.4 billion initial public offering (IPO) on June 30 last year, said in a statement on Saturday that it would not apply for another listing on any other exchange before completing its delisting from the New York Stock Exchange.
In a statement issued in December, Didi had said that it would delist from New York and pursue a listing in Hong Kong. The planned delisting, uncertainties arising from its cybersecurity investigation and the lack of immediate prospects for a relisting, are set to deal a heavy blow to the company’s valuation – and could even undermine investor confidence in Chinese stocks.
The China Securities Regulatory Commission (CSRC), the country’s stock market watchdog, said in a statement issued immediately after Didi’s announcement that the ride-hailing firm’s delisting plan had nothing to do with other US-listed Chinese stocks, and was not related to “the ongoing audit cooperation between China and the US,” in an apparent move to control any spillover damage from Didi’s statement.