China-US Economic Ties

Didi Shareholders Vote to Delist from New York Stock Exchange

A majority of ride-hailing company Didi Global’s shareholders have voted in favor of a plan to delist the company’s American Depository Shares from the New York Stock Exchange, ending a year-long saga that began when the company’s 2021 listing drew the ire of regulators in Beijing.

The company reported that over 96% of shareholders present at an extraordinary general meeting voted in favor of the move.

“It’s the only option for shareholders. They were going to be in purgatory if they (Didi) persisted in their disobedience to the Chinese government,” said Thomas Hayes, chairman of Green Hill Capital.

 

MARKET INSIGHTS: China Stocks Delisting From US: Everything You Need to Know

 

Didi announced in April it would hold the May 23 EGM to vote on delisting, and also said it would not apply to list its shares on any other stock exchange before the delisting was complete.

Didi has struggled after annoying Chinese regulators by going ahead with a $4.4 billion New York listing in 2021 despite being asked to put it on hold. Just days after the IPO, the Cyberspace Administration of China (CAC) launched an investigation into the company’s data practices, then ordered app stores to remove 25 mobile apps operated by Didi, and instructed Didi to stop registering new users.

The company plans to file a Form 25 with the US Securities and Exchange Commission on or after June 2 to delist its ADS.

  • Reuters, with editing by Neal McGrath

ALSO ON AF:

Didi Slashes UK Staff, Delays EU Rollout Until 2025 – Guardian

China to Conduct Cybersecurity Review of Ride-Hailer Didi Global

China Sends Officials From 7 Agencies to Probe Didi Amid Cybersecurity Row

Neal McGrath

Neal McGrath is a New York-based financial journalist. Neal started his career covering the Asia-Pacific region for the Economist Intelligence Unit, then joined Asian Business magazine. He's subsequently held a variety of editorial positions covering business, economics, finance and sustainability. Neal has lived and worked in Hong Kong, Singapore, Germany and the US.

Recent Posts

Nikkei Boosted by Big Tech, Policy Hopes Lift China Stocks

Global markets were subdued for the Easter break but Tokyo’s benchmark bourse still gained to…

2 seconds ago

US ‘Drawing Up List of Sanctioned Advanced Chinese Chip Fabs’

The Joe Biden Administration is taking pains to strengthen its existing chips restrictions on China…

16 mins ago

FTX Crypto Fraudster Bankman-Fried Jailed For 25 Years

A US District Judge said the former billionaire wunderkid was responsible for one of the…

17 hours ago

China’s Big 5 Lenders Warn of Property Risks as Margins Shrink

Banks have been reluctant to deepen their exposure to the ailing real estate sector but…

19 hours ago

Chinese Biotech Giant WuXi ‘Sent US Client’s Data to Beijing’

US intelligence officials say Chinese pharma companies are risking national security at a time when…

23 hours ago

China’s BYD Delays EV Factory; Solid-State Batteries ‘Unsafe’

BYD has set back plans for an EV factory in Vietnam, while CATL has said…

23 hours ago