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Didi It plunged on Friday after the company announced plans to delist from the New York Stock Exchange and instead list in Hong Kong.
China’s ride-haling giant share has since been hit by regulatory issues in its home country. Initial public offering In the United States earlier this year. Currently, stocks are about half the initial listing price.
Diddy’s share price fell 14% after first rising as much in US pre-market trading.
The company announced on Friday that it will be delisted “immediately” from the New York Stock Exchange and will begin preparing for another listing in Hong Kong. According to the statement, US stocks will be converted to “freely tradeable stocks” on another international exchange.
Delisting marks the premature end of Diddy’s short-lived time as a US-listed company. Investors want a smooth transition of Diddy’s US-listed stocks to Hong Kong. However, the details of how the company works on this are thin. Diddy’s move to delist at least eliminates the risks imposed by regulatory agencies.
Neil Camping, Global TMT Analyst at Mirabeau Equity Research, said: “US stocks are free to trade when listed on the Hong Kong Stock Exchange, but the move is ultimately for many investors looking to reduce losses. It’s likely to be a good straw. ” Note.
“There are also many individual investors in this stock. We speculate that they are trying to run for the exit.”
Delisting is “another black eye for China’s tech stocks,” said Daniel Ives, managing director of Wedbush Securities.
“Street is still a very diverse Chinese tech stock, and this Diddy situation is another warning story,” Daniel Ives, managing director of Wedbush Securities, told CNBC. Diddy’s shareholders are likely to switch to another SoftBank-backed company, he added. grab, Play in the Asian mobility market.
grab Published on Thursday Following a deal with the special acquisition company Altimeter Growth Corp., the shares of Singapore-based ride-hailing services and food delivery company lost more than one-fifth of its value due to the closing bell.
Beijing regulators have bent their muscles in an attempt to line up major Chinese internet companies.The crackdown began with the founder of Alibaba Jack Ma And his fintech company, Ant Group, was suspended from its IPO at the end of last year following critical comments from Chinese technology billionaires on regulatory agencies.
Beijing’s technology crackdown soon moved to other areas, including ride hailing. Chinese regulators reportedly expressed concern about the security of Diddy’s data prior to the company’s IPO in June. Two days after his debut, Diddy was hit by a review from Beijing’s cyberspace agency. A week later, authorities ordered the Chinese app store to remove Didi’s main app.
Chinese regulators called on company executives to plan delisting from the United States, but Diddy declined to comment at the time, according to a Bloomberg report last week.
Meanwhile, Washington is also trying to tighten regulations on Chinese companies on US exchanges. On Thursday, the US Securities and Exchange Commission finalized a rule allowing foreign stocks to be delisted because they did not meet audit requirements.
Didi shares fall from the US to delisting plans
Source link Didi shares fall from the US to delisting plans