On December 3, Didi Chuxing Technology Co was delisted on the New York Stock Exchange. Didi is a ride-sharing platform that shares a similar business model to Uber of the U.S.
Internal information from a state-owned securities company said that the Cyberspace Administration of China had not allowed Didi to list shares in the US., and asked this agency to postpone the listing. However, Didi still proceeded with the process without any public announcement.
Didi was listed as DIDI.N on the New York Stock Exchange on June 30th at $14 per share.
Two days later, 25 mobile apps from DIDI were removed inside China’s app stores by the Cyberspace Administration of China. The company was banned from registering new users.
Didi did not make any publication for their listing but publicly announced their delisting on the New York Stock Exchange.
They said that the board of directors had approved the decision, and will organize for shareholders to vote on this decision following legal procedures. No reason has been given for now.
They plan to switch to the Hong Kong Stock Market. However, it is reported that the listing of Didi Chuxing in Hong Kong will be difficult, as the company’s core ride-sharing business in China accounts for only twenty to thirty percent.
The CCP claimed that Didi Chuxing was violating national security and requested the group to delist into the U.S. Market. The CCP authorities checked the records of business activities at Didi Company headquarters. The investigation is still ongoing.
Host of Crossroads Show, Tang Hao once said that behind these tech giants like Didi, Alibaba, Ant Group, Tencent, China Life, CITIC Capital, Zhongjin Jiazi, are Jiang Zemin’s faction and the second generation politicians.
The power battle is going at full speed inside the Chinese Communist Party and it seems like Xi Jinping spares no exceptions.