Didi Chuxing to delist from the US and move to Hong Kong

Chinese ride-hailing company Didi Chuxing is planning to delist from the US and plans to list in Hong Kong instead after just six months as it listed in the New York Stock Exchange in June. 

On its Weibo account, the company said on Friday that after meticulous study, it will start working on the delisting and kicking off the listing in Hong Kong. It offered no other information on Weibo. Moreover, on its website, it said, "The board of directors has authorised and supports the company to undertake the necessary procedures and file the relevant applications for the delisting of the company’s ADSs (American depositary share) from the New York Stock Exchange, while ensuring that ADSs will be convertible into freely tradable shares of the company on another internationally recognised stock exchange at the election of ADS holders."

In late November, Chinese regulators asked Didi Chuxing's executives to work on a plan to delist from the US due to concerns about leakage of sensitive data. 

It added that the company will "organise a shareholders meeting to vote on the above matter at an appropriate time in the future, following necessary procedures. The board has also authorised the company to pursue a listing of its class A ordinary shares on the main board of the Hong Kong Stock Exchange."

Didi Chuxing drew ire from the Chinese authorities as it listed in the New York Stock Exchange in June. Didi Chuxing had its IPO on 30 June in the US but soon after this, the Chinese government asked it to remove from app stores due to serious violations on Didi Global's collection and usage of personal information. Multiple reports said the Cyberspace Administration of China announced the ban after the IPO, just two days after the regulator said it was starting a cybersecurity review of the company.

The authority said that it had ordered Didi Chuxing to rectify its problems following legal requirements and national standards, and take steps to protect the personal information of its users. The CAC did not specify what it would look into, but the time of announcement came after Didi Chuxing's IPO and on 30 June and the Communist Party’s 100th anniversary celebrations in Beijing. Moreover, in July, it was reported that the Chinese government is considering handing Didi Chuxing serious penalties after its IPO in the US last month, while the authority is reportedly weighing a range of potential punishments already, according to a report from Reuters.

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