They have discovered little evidence so far to support allegations that the company posed national data security risks by listing in the U.S.
Under Chinese law, transportation companies like Didi are classified as "critical infrastructure providers." Geographic information and data on traffic flows could be construed as sensitive.Ĭhinese authorities have wrapped up investigations into Didi. counterparts, the Journal reported.įor data-heavy internet companies, a group that makes up the bulk of U.S.-listed Chinese firms, audit working papers can contain raw data such as meeting logs, user information and email exchanges between companies and government agencies, among other things. Chinese officials wanted Didi to put off the listing until they could address the issue with their U.S. officials balked at the offer and said China used the national-security argument as an excuse to not open up companies' books.ĭidi's New York IPO came when Beijing and Washington were at loggerheads over the audit-paper issue, formalized in the Holding Foreign Companies Accountable Act that was signed into law by President Donald Trump last year. regulatory inspection for three consecutive years.īeijing has said giving Washington unfettered access to these papers will endanger China's national security and has offered compromises such as redacting sensitive information in the documents before handing them over to the U.S. legislation that is set to kick Chinese companies off American stock exchanges if they fail to hand over their audit working papers for U.S. and NetEase Inc., though these companies have retained their U.S. Since late 2019, more than a dozen U.S.-listed Chinese companies have sought alternative listings in Hong Kong, including marquee names like Alibaba Group Holding Ltd. It had a market capitalization of about $38 billion as of Thursday, according to FactSet. Didi didn't provide a reason for the planned New York delisting.ĭidi went public at a valuation of $68 billion-and its market value briefly shot even higher-before Beijing launched the regulatory assault on the company in early July. It said it would arrange a shareholder meeting to vote on the move. One option would be to first secure a listing elsewhere, while another route would be to pursue a take-private deal that would buy out the shares held by public investors-a transaction that would require billions of dollars of financing given its market capitalization.ĭidi said it would apply to delist its American depositary shares from the NYSE, while ensuring they would be convertible into shares that could be freely traded on another international stock exchange. The Journal also reported in October that China's internet watchdog had suggested that Didi explore a listing in Hong Kong.ĭidi's Thursday statement didn't specify how it plans to delist from New York. In July, The Wall Street Journal reported that Didi was considering going private to placate Chinese authorities.
Chinese regulators also blocked Didi's China business from adding new users and ordered it to take down some apps. But shortly after the IPO, Chinese authorities, taken by surprise by Didi's move to go public, said they were conducting a data-security review. and China, which has already seen several Chinese companies expelled from American exchanges.ĭidi listed on the New York Stock Exchange on June 30 after raising about $4.4 billion from an IPO. It would mark an escalation in the financial decoupling between the U.S. The move, which Didi said Thursday was supported by its board, comes as authorities in Beijing wrap up a cybersecurity probe into the company. and pursue a listing in Hong Kong, a dramatic reversal just months after the Chinese ride-hailing group's ill-fated initial public offering in New York. A man walks past the headquarters of the Chinese ride-hailing service Didi on Thursday in Beijing.ĭidi Global Inc.
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