China app giant Didi plans US stock market exit in move to Hong Kong

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Didi's listing was the biggest by a Chinese company in the US.

Didi Global plans to take its shares off the New York Stock Exchange and move them to Hong Kong.

Since its US debut, the firm has come under intense pressure.

Beijing announced a ban on technology companies listing overseas within days of the IPO.

The US market watchdog unveiled new rules for Chinese firms that list in America.

The company will delist from the New York stock exchange and begin preparations for a listing in Hong Kong, it said on its account.

Didi said in a statement that it would organize a shareholders meeting to vote on the matter at an appropriate time in the future.

Didi raised $4.4 billion in its New York IPO at the end of June.

On the first day, trading was subdued as investors weighed concerns over tensions between Washington and Beijing and issues raised by US regulators over some Chinese firms' financial reports.

China's internet regulator ordered online stores not to sell Didi's app, saying it illegally collected users' personal data.

The Cyberspace Administration of China is investigating the firm to protect national security and the public interest.

Didi said in a statement that the company will strive to correct any problems, improve its risk prevention awareness and technological capabilities, protect users' privacy and data security, and continue to provide secure and convenient services to its users.

Didi warned that the removal of its app from Chinese stores would have an adverse impact on its revenues.

Didi has come under pressure from regulators in the US and Europe.

The Securities and Exchange Commission said on Thursday that it had finalized rules that would allow it to delist foreign companies if their auditors don't comply with requests for information from regulators.

The law was passed in 2020 after Chinese regulators repeatedly denied requests from US authorities to inspect the accounts of Chinese firms that list and trade in the US.

It was planning to provide services in major British cities.

SoftBank is Didi's largest investor with a stake of more than 20%. It is backed by two Chinese technology giants.

Didi took over the firm in 2016 and now owns a stake in it.

Didi Global shares have lost 40% of their value.

Chinese technology companies have been under scrutiny at home and abroad.

Didi has been at odds with Chinese regulators.

Didi was removed from app stores by Beijing just a few days after it went public on Wall Street.

Beijing has announced rules to protect the rights of the millions of ride-hailing drivers.

Chinese companies have also been watched by American regulators.

Didi said that shareholders of its US listed shares will be able to convert their holdings to those on another stock exchange when it is listed in Hong Kong.

The company is going to re-release its apps in China by the end of the year.

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How a small man became a financial giant.