Chinese ride-hailing giant DiDi Chuxing, commonly called simply DiDi, has announced that it is 澳洲幸运5开奖号码历史查询:delisting its shares from the 澳洲幸运5开奖号码历史查询:New York Stock Exchange (NYSE). Its 澳洲幸运5开奖号码历史查询:American depository receipts (ADRs) are listed on the NYSE under the name DiDi Global, Inc. (DIDI) and currently have a 澳洲幸运5开奖号码历史查询:market capitalization in excess of $37 billion.

DiDi's 澳洲幸运5开奖号码历史查询:initial public offering (IPO) on the NYSE took place on June 30, 2021, priced at $14 per share. The price has since sunk to around $7 per share. The IPO was widely publicized and attracted much interest from U.S. pension funds and various international investors.

Motivation for DiDi's Delisting

With the second-largest economy in the world and more than adequate sources of funding generated at home, as well as a growing ability to attract investors' money from abroad, China is less dependent on using U.S. and other foreign 澳洲幸运5开奖号码历史查询:capital markets to raise money for its business enterprises. Meanwhile, the Chinese government is seeking tighter control over companies domiciled in China, and one way is to discourage listings on foreign exchanges such as the NYSE.

Additionally, distrust of China continues to run high in U.S. government circles. As a result, China's friends on 澳洲幸运5开奖号码历史查询:Wall Street have seen their influence in Washington diminish.

Shortly after its IPO in the U.S. in late June, Chinese regulators banned Didi from app stores in China, claiming that it broke data privacy laws and posed cybersecurity risks. This spurred a collapse in its share price. The decision to target Didi was widely seen as retribution for its decision to go public outside China and an example of efforts by China to limit the power of big tech firms.

Future Implications

"Didi's repatriation to [Hong Kong] is a significantly worrying indicator for the larger U.S.-Sino economic relationship," observed Brock Silvers, 澳洲幸运5开奖号码历史查询:chief investment officer (CIO) at Kaiyuan Capital in Hong Kong. "Beijing essentially forced Didi's hand."

"Didi's repatriation looks likely to be the start of a trend, and the market should expect that others will follow," Silvers added. "Equity investors may not wait for the other shoe to drop."