China asks Didi to delist from New York Stock Exchange
Business & Technology
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Over the Thanksgiving holiday, the Cyberspace Administration of China asked Didi to delist from U.S. markets over data security concerns, a decision that has left many U.S.-listed Chinese tech companies wondering who might be next.
- The government’s proposals include taking the company private or floating shares in Hong Kong, followed by a U.S. delisting.
- Indexes plummeted following the news, with the Hang Seng index falling by almost 4% in the past three days. Didi stocks plunged by 7% on Friday and shares of Softbank, Didi’s biggest shareholder, fell 5% in Tokyo.
The context: Didi has been in treacherous waters since its app was suspended in July after a rushed IPO angered regulators. But sources say Beijing may still backtrack from the latest request.
- Didi’s president Jean Liu (柳青 Liǔ Qīng) told associates in September that she plans to step down, citing the likelihood that the government would take over management.
- Other future casualties may include Alibaba and JD.com, both of which own logistics and cloud businesses that handle sensitive data.
The takeaway: Regulators have cast a wide net with the latest moves. Under the guise of national security, any U.S.-listed companies with reams of data might be on the chopping block.
