An extraordinary shareholders’ general meeting is scheduled to be held on May 23 by DiDi Global Inc. to vote on the delisting of its shares on the new stock exchange. This points toward heeding the call from Beijing to address concerns about how the ride-hailing giant’s data is being handled abroad.
The delisting from US stock exchange
As per Bloomberg News, the company said Saturday they will first finish the delisting process in the U.S. and not apply to sell shares on another stock exchange. DiDi would continue to explore another stock exchange that is internationally recognized and where a potential listing can be explored.
As per a statement by the China Securities Regulatory Commission published on its website, DiDi Global Inc. has decided to delist its shares based on its position and market situation.
Didi’s listing on the U.S. Stock exchange in mid- 2021 angered the Chinese government. After a few days,’ the cybersecurity probe was launched into the firm, and domestic app stores removed its services.
The data security agency in Beijing had asked the top executives of DiDi to devise a plan for delisting off its shares because of concern of data leaks. In December, the company had announced that the board had authorized the company to file for removal and it would pursue the sale of its shares in Hong Kong. DiDi added that its U.S. stock would be fully convertible and tradeable on another stock exchange freely.
Last month, Bloomberg reported that DiDi had suspended work on a float in Hong Kong scheduled for summer as the Chinese Cyberspace Administration told that the executive’s proposal to prevent data leaks had fallen short.
DiDi’s case will not affect talks between China and the U.S. on the audit of its first listed in the U.S.A., according to a statement by CSRC.
Recently, China modified its decade-old laws, which restricted its offshore companies’ practice of sharing financial data. This removed a key obstacle for regulators in the U.S. to gain full access to the financial results of the majority of the 200 plus Chinese companies trading in New York.
