Didi Chuxing Technology Company will possibly delist from the New York Stock Exchange. The Chinese vehicle-for-hire company is reportedly among the business establishments in China in which regulators signal as an entity that could be forced to remove its shares from foreign bourses.
The Chinese government is reportedly utilizing national security as an excuse to reverse Didi’s offering in New York last June. We find this latest US stock market-related news worth sharing with our readers.
We think this update about Didi will inform them about the situation of the Chinese companies listed in American stock exchanges amid what we believe is a trade war between the United States and China.
According to the news posted online by finance, business, and markets news source Bloomberg, the possible delisting of Didi demonstrates how the Chinese government’s interpretation of security casts a dark shadow on global investors.
Additionally, a potential delisting of Didi at the behest of the Beijing Government risks repercussions well beyond the fortunes of the investors who invested in the Chinese ride-hailing firm.
Asset managers like Vanguard Group and BlackRock Incorporated and technology companies like SoftBank Corporation and Tencent Holdings Limited reportedly have to get ready. This situation comes as Didi’s management may take the firm private.
Speculations also come, such as Didi potentially listing in Hong Kong before being removed from the New York Stock Exchange, the world’s largest stock exchange, per Bloomberg News report.
Didi Global Incorporated made its public debut on the New York Stock Exchange last June 30 for US$14 per share. This Chinese ride-hailing company said that it was able to raise US$4.4 billion in its US initial public offering, pricing itself at the top of its indicated range and increasing the number of shares sold.
Moreover, Didi sold 316.8 million American Depository Shares, versus the intended 288 million, at US$14 apiece. We agree that investors should watch out and pay attention to the latest developments regarding Didi.
We believe the ongoing trade war between the United States and China can heavily affect the entities that bought Didi shares. After all, we gathered that there is a possibility that the ride-hailing firm would enlist in the Stock Exchange of Hong Kong.
Furthermore, we learned that Didi’s management could take this company private. With all of these possibilities, we think Didi’s investors should truly monitor the news and the forthcoming events.
We think they are less powerful than the Chinese government. We believe the latter would execute anything it deems fit for the benefit of its people and businesses.