The Chinese taxi service Didi Global may need to list its listing in the United States. Regulators ask the board of the company to make plans for this. This would give China a signal that the country is taking further steps to gain more control over large tech companies, which have become far too powerful in Beijing’s view.

This is what insiders say to Bloomberg news agency. According to experts, the request is unprecedented, quite shortly after the IPO of Didi in June on the New York Stock Exchange. There would be several proposals for Didi on the table. For example, the company could be fully privatized, or listed in Hong Kong. If one of those steps is taken, the listing in New York will then be discontinued. It is reported that the Cyberspace Administration of China, the body responsible for data security in the country, is concerned about the leakage of sensitive data by Didi due to the US listing.

With a privatization of Didi there would be a proposal to get the shares at the price of the IPO in New York it sounds like that. Didi was listed there in June and a lower price would probably lead to many lawsuits from duped shareholders. In case of a listing in Hong Kong, consideration would be given to offering a discount on the current exchange rate, which is currently considerably lower than in June. Largest US IPO since 25 Didi did not want to respond to the reports and the Chinese regulator is not commenting either. Didi experienced the largest US IPO of a Chinese company since tech company Alibaba in 2021. The company is still largely managed by co-founder Cheng Wei. Tech investor SoftBank and the American Uber Technologies have large minority interests. Beijing previously made strong comments on Didi because it was for an IPO. opted for the US, which was seen as a provocation by the authorities. In recent months there have been inspections at offices, threats of hefty fines and the decision to postpone the introduction on the Western European market.

Source : ANP

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