“Chinese Uber”: Didi leaves the New York Stock Exchange


Status: 03.12.2021 5:33 p.m.

The Chinese transport service provider Didi is withdrawing from the New York Stock Exchange. The reason is obviously that Beijing has flexed its muscles once again. The course crashed.

By Peter Mücke, ARD-Studio New York

Didi Chuxing had a brilliant start on the New York Stock Exchange only six months ago. The travel agent had raised $ 4.4 billion on the Nasdaq. It was the second largest IPO of a Chinese company in the US after the online giant Alibaba in 2014. In the meantime, Didi has reached a market value of 80 billion dollars.

Beijing is increasing the pressure

But just a few days after the IPO in New York, the company in Beijing was targeted by the authorities. The Didi app was banned from the app stores in China by order of the regulators. Official justification: Serious violations in the collection and use of personal data have been found. It is more likely that the Chinese authorities wanted to prevent an IPO in the US.

Didi offers driving services in China and 16 other countries including Australia, Brazil, Mexico and Russia. Now the company has announced the first steps to withdraw from the New York Stock Exchange. The company announced that the management board had authorized the company to initiate a corresponding procedure. Votes should be taken at a shareholders’ meeting later. At the same time, a listing on the Hong Kong stock exchange will be sought. The price of Didi shares fell sharply after the announcement of the withdrawal and lost more than 15 percent at the start of trading.

Skepticism on both sides

Chinese companies have been raising capital on the New York Stock Exchange for many years. However, against the background of increasing tensions between the two superpowers, there are more and more reservations not only in Beijing but also in the United States.

While Beijing is expressing security concerns, US critics warn against a lack of transparency by Chinese companies. There were also concerns about unclear links with the Communist Party.


www.tagesschau.de

Leave a Reply

Your email address will not be published. Required fields are marked *