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China's Uber rival Didi plans to withdraw from the New York Stock Exchange

2021-12-03T10:55:28.832Z

The relationship between China and the USA is tense, which has hurt Uber rival Didi. Now the company is drawing conclusions.



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A trader on the New York Stock Exchange on Didi's IPO

Photo: BRENDAN MCDERMID / REUTERS

Chinese Uber rival Didi Chuxing, who has come under heavy pressure from China's regulators, has announced steps to withdraw from the New York Stock Exchange.

The company announced on Friday that the board of directors had authorized the company to initiate the necessary proceedings.

Votes should be taken at a shareholders' meeting later.

At the same time, a listing on the Hong Kong stock exchange will be sought.

Just a few days after its IPO in the summer, the transport service broker was targeted by Chinese regulators, who reportedly wanted to prevent Didi from going public abroad.

The Beijing cyberspace regulator ordered the deletion of the Didi app from Chinese app stores just days after the listing in New York.

In an investigation, "serious violations" were found in the collection and use of personal data by Didi, it said.

The share price of the Uber rival, which also operates in 16 other countries including Australia, Brazil, Mexico and Russia, has halved since it went public in early July.

Security concerns here, transparency issues there

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 about this approach not only in Beijing, but also in the United States.

While Beijing raised security concerns, US critics warned of a lack of transparency by Chinese companies listed in New York.

There were also concerns about unclear links with the Communist Party.

The regulatory authorities in Beijing recently investigated a number of Chinese Internet companies and announced stricter rules for them.

The tide began to turn last fall when Jack Ma, founder of online retail giant Alibaba, was first targeted by political leaders after criticizing the country's state bank-dominated financial sector as outdated and backward.

The unusually brisk attack meant that the IPO of the Alibaba financial subsidiary Ant Group had to be canceled.

kig / dpa-AFX

Source: spiegel

All business articles on 2021-12-03

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