“Chinese Uber”: Didi leaves the New York Stock Exchange

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Beijing is increasing the pressure

But just a few days after the IPO in New York, the company in Beijing was targeted by the authorities. The Didi app was banned from the app stores in China by order of the regulators. Official justification: Serious violations in the collection and use of personal data have been found. It is more likely that the Chinese authorities wanted to prevent an IPO in the US.

Didi offers driving services in China and 16 other countries including Australia, Brazil, Mexico and Russia. Now the company has announced the first steps to withdraw from the New York Stock Exchange. The company announced that the management board had authorized the company to initiate a corresponding procedure. Voting should take place later at a shareholders’ meeting. At the same time, a listing on the Hong Kong stock exchange will be sought. The price of Didi shares fell sharply after the announcement of the withdrawal and lost more than 15 percent at the start of trading.

Skepticism on both sides

Chinese companies have been raising capital on the New York Stock Exchange for many years. However, against the background of increasing tensions between the two superpowers, there are more and more reservations not only in Beijing but also in the United States.

While Beijing is expressing security concerns, US critics are warning of a lack of transparency by Chinese companies. There were also concerns about unclear links with the Communist Party.