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Chinese taxi service Didi has officially announced that it will delist from the New York Stock Exchange. Instead of the US, Didi plans to list its ordinary shares on the Hong Kong stock exchange, the company said.
At the end of six months on the US exchange, Didi has the worst performance of any Chinese company that held IPOs in the US, notes Bloomberg. The taxi service floated its shares on the New York Stock Exchange in June at $14 apiece. As of the close of U.S. trading on Dec. 2, they were at $7.8 - 44 percent cheaper.
Didi's listing was the biggest for Chinese companies in the US since that of Alibaba in 2014, with the service attracting $4.4bn. Days after the IPO, Chinese regulators demanded Didi be removed from local app shops, banned new user registrations and launched a major investigation into compliance with cybersecurity rules.
"China has made it clear that it no longer wants technology companies to enter US markets because it puts them under the jurisdiction of US regulators," Aaron Costello, regional head of Asia at Cambridge Associates, told CNBC. "So we believe that almost all US-listed technology companies will move to Hong Kong or the mainland".
source: cnbc.com
At the end of six months on the US exchange, Didi has the worst performance of any Chinese company that held IPOs in the US, notes Bloomberg. The taxi service floated its shares on the New York Stock Exchange in June at $14 apiece. As of the close of U.S. trading on Dec. 2, they were at $7.8 - 44 percent cheaper.
Didi's listing was the biggest for Chinese companies in the US since that of Alibaba in 2014, with the service attracting $4.4bn. Days after the IPO, Chinese regulators demanded Didi be removed from local app shops, banned new user registrations and launched a major investigation into compliance with cybersecurity rules.
"China has made it clear that it no longer wants technology companies to enter US markets because it puts them under the jurisdiction of US regulators," Aaron Costello, regional head of Asia at Cambridge Associates, told CNBC. "So we believe that almost all US-listed technology companies will move to Hong Kong or the mainland".
source: cnbc.com