Chinese company Didi Global – the world‘s largest passenger transport services company – is planning to proceed with a listing in Hong Kong shortly before embarking on a delisting from New York. The news agency Reuters reports, citing sources close to the company.
Towards double listing in Hong Kong
Didi aims to complete a double primary listing in Hong Kong in the next three months. The program was undertaken under pressure from Beijing to delist from New York by June 2022, one of the sources said.
In November, the Beijing diktat
In fact, on November 26, the Technological Supervisory Authority of the People’s Republic asked the leaders of big tech to develop a plan for the delisting from US stock exchanges: an unprecedented request that had rekindled fears about Beijing’s tightening of control over its gigantic technology industry. Fears that are now confirmed by the news on the imminent delisting of the company and the simultaneous landing on the Hong Kong stock exchange.
US-China clash over cybersecurity
The supervisor wants management to take the company off the New York Stock Exchange due to concerns about the loss of sensitive data. The Cyberspace Administration of China, the agency responsible for data security in the country.