Chinese ride-hailing giant Didi Global Inc. said late Thursday it plans to delist from the New York Stock Exchange, bowing to pressure from the Chinese government.
“After careful study, the company will start delisting on the New York Stock Exchange immediately, and start preparations for listing in Hong Kong,” Didi said in a post on its Weibo account.
The move is a major reversal for Didi, which raised $4.4 billion in a massive IPO in June. Didi’s American depository shares
were little changed Thursday, but have sunk 45% since the IPO.
Chinese regulators have been moving to restrict offshore IPOs of Chinese companies, especially ones holding vast amounts of customer data. Last week, Bloomberg News reported Chinese regulators asked Didi to delist from the NYSE, over concerns the company could leak sensitive data.
U.S. regulators have also been cracking down on Chinese companies that don’t comply with U.S. auditing rules.
Meanwhile, Alibaba’s Hong Kong-traded shares
hit an all-time low Thursday amid worries that it may be forced to delist from the NYSE. Its U.S.-listed shares
slipped 0.4% Thursday.