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Tag: DIDI stock

  • DiDi Global Inc. (DIDI) Plunges on Upcoming EGM for voting on Voluntary Delisting from NYSE

    The Chinese hail-riding company, DiDi Global Inc. (DIDI) is going to hold an Extraordinary General Meeting of Shareholders on May 23, 2022. On April 16, the company announced it will hold the EGM for voting on the voluntary delisting of its shares from the NYSE exchange. The news sparked a sell-off in the stock early morning today, April 18, 2022.

    Source: iPleaders

    At the time of writing, DIDI had declined by 17.48% and was trading at $2.03 in the premarket. The number of shares exchanged was 2 million at the last check.

    DIDI’s EGM

    The company will hold EGM at 7:00 a.m. Eastern Time on May 23 in Beijing, China. The purpose of the EGM is to vote on the voluntary delisting of its ADSs from NYSE in order to better corporate with cybersecurity review. The company is under a cybersecurity investigation by Chinese regulators.

    Moreover, the company also disclosed that it will not apply for listing its shares on any other stock exchange before the delisting is completed. The record date for the EGM is the close of business on April 28, 2022, according to Eastern Time.

    Additionally, DIDI also plans to explore its options and possible appropriate measures including listing on another recognized exchange. Trading on OTC Pink Sheets after the delisting depends on shareholders’ and independent third-parties actions.

    Market Situation and DIDI

    Chinese stocks have had a very tough time this year. Initially, China’s relationship with Russia amid the Russia-Ukraine conflict instigated fears among investors. But once the situation was cleared as China showed its support for its own companies, the decade-long audit conflict with the U.S. started taking a toll on the stocks. After being at an impasse for so long, the U.S. is finally at it for solving the issue. DIDI was one of the names added by U.S. regulatory authorities to the list of potential violators regarding the audit concerns.

    After China started showing leniency and suggested exploring other options that involve audits by U.S. regulators, Chinese stocks finally took a sigh of relief. Investors started showing their interest in the stocks and had them really big. Concerns have started growing once again as Congress is not ready for any more compromise.

    Amid this dispute, DIDI is also facing a cybersecurity investigation in China.

    Conclusion

    Given the multiple blows, DIDI has decided to voluntarily delist its ADSs from the NYSE as soon as possible. The company will hold EGM for voting on the issue. So far, the news has DIDI stock plunging down in today’s premarket.

  • DiDi Global Inc. (DIDI) Stock on a Rise in Premarket, Here’s Why

    DiDi Global Inc. (DIDI) Stock on a Rise in Premarket, Here’s Why

    DiDi Global Inc. (DIDI), a mobility technology platform, has soared 9.62% in the premarket trading session. As a result, DIDI stock is trading at $8.55 at the time of the writing. The increase could be attributed to DIDI’s plans to get delisted from NYSE. On Thursday, the stock closed the day at $7.80 after slightly declining by 0.13% during regular trading hours.

    Why DIDI surging?

    In the late hours of Thursday, news emerged that DIDI plans to delist its shares from the NYSE in the US. The company intends to pursue its listing in Hong Kong. That news depicts a dramatic reversal as just weeks ago; the Chinese ride-hailing group’s Initial Public Offering was done in New York. The company said that the move to get delisted from NYSE was supported by its board of directors. The move has come after the Chinese authorities have wrapped up a cyber-security probe in the company that would mark a financial decoupling between US and China.  

    Executive Authorization of Delisting

    On Thursday, DIDI announced that its board of directors had authorized and supported the company to undertake the necessary procedures to file the relevant applications for the delisting of the company’s ADS from NYSE. The board also asked the company to ensure that ADS would be convertible to the freely tradable shares of the company on some other internationally recognized stock exchange at the election of ADS holders.

    What’s Ahead for DIDI?

    During the last three months, DIDI stock has declined by more than 10%, based on the harsh policies by the Chinese regulators. With its plans to delist from NYSE, the analysts expect the company to leave a mark in the market where it gets listed.

  • DiDi Global Inc. (DIDI) Stock Continues Downward Spiral as Chinese Government Continues Crackdown on Tech Space

    DiDi Global Inc. (DIDI) Stock Continues Downward Spiral as Chinese Government Continues Crackdown on Tech Space

    DiDi Global Inc. (DIDI) stock prices were down 2.06% as of the market closing on July 15th, 2021, bringing the price per share down to USD$12.36 at the end of the trading day. Subsequent premarket fluctuations have seen the stock fall 6.96%, bringing it down to USD$11.50.

    CAC Investigation

    July 16th 2021 saw the Cyberspace Administration of China (CAC) report that officials from at least seven departments initiated the conducting of a cybersecurity review of DIDI, having sent officials on July 16th, 2021. The regulatory officials included the CAC, Ministry of Public Security, Ministry of State Security, Ministry of Transport, Ministry of Natural Resources, State Taxation Administration, and State Administration for Market Regulation.

    Government Involvement

    With the CAC not offering many details in its statement, the involvement of the myriad of government agencies signals the heavier regulatory pressure on the company, which will celebrate a decade of being in business in the upcoming year. The Chinese government is in the process of revamping its policies in regard to the privacy and data security. This includes the drafting of a Personal Information Protection Law, which will see tech platforms being required to impose stricter measures to ensure secure storage of user data.

    New Legislation

    September 2021 will see China implement its new Data Security Law, which will require companies that process “critical data” to conduct risk assessments and submit reports. The regulations will also call on organizations that process data affecting the country’s national security to submit annual reviews. The company currently has a market cap of around USD$60 billion and is reported to store all of its Chinese user and road data in China.

    DIDI IPO

    The Cyberspace Administration of China launched the data-related cybersecurity investigation into the company two days after its IPO. The New York initial public offering saw the company generate USD$4.4 billion in the capital. Furthermore, the company was ordered by the regulators to remove its application from the market space in China. This is expected to negatively affect the company’s revenue, despite the app continuing to be used by users who already had it downloaded.

    Future Outlook for DIDI

    With the Chinese government cracking down on companies like DIDI, shareholders are concerned about the future prospects of the commercial potential of their investments. The company is keen to comply with the newly announced regulations in a bid to consolidate its market footprint and mitigate the losses expected.

  • DiDi Global Inc. (DIDI) Stock Plummets as Increasing Chinese Regulations Result in Cancellation of U.S IPO

    DiDi Global Inc. (DIDI) stock prices were down by 5.30% as of the market closing on July 2nd, 2021, bringing the price per share down to USD$15.53 at the end of the trading day. Premarket fluctuations saw the stock plummet by 22.22%, bringing it down to USD$12.08.

    Troubles in China

    July 6th, 2021 saw the company announce the removal of its DiDiChuxing mobile app in China in accordance with directions from the Cyberspace Administration of China (CAC). The order came following the CAC’s belief that the company was collecting the personal information of its users, which is in direct violation of Chinese laws and regulations. Global operations are expected to be directly unaffected. With the app having been taken down in the massive Chinese market, the company expected its Chinese revenues to suffer. Fortunately, users who had downloaded the app before the CAC’s directives can continue making use of it.

    Increasing Regulations

    The Chinese version of Uber, the ride hailing service, is facing a harder time pitching its shares to prospective investors as China’s regulations are ramped up. Global equity managers are considering the impact of the increasing regulatory threats as the country’s efforts to control big data develop. The move sees China target companies that are spreading into the North American markets with the launches of U.S IPOs by Chinese tech companies.

    Scope of Chinese Tech Space

    The Chinese capital continues to crack down on the tech space, with as many as 34 pending filings for U.S. listings by Chinese and Hong Kong based companies having been announced this year. These numbers are unprecedented, with more than USD$15 billion priced in New York IPOs in the year so far. Following the cybersecurity review of DIDI, the company saw its shares drop massively in the U.S premarket.

    Ripple Effect

    Chinese companies that are subject to increasing regulations are unhappy with the way the regulations are being enforced. Rather than preventing the U.S IPOs from commencing, China has forced companies to break trust with many foreign investors. Even after the resolution of the matter at hand, it will take significant effort to repair the adverse effect on the company’s brand image.

    Future Outlook for DIDI

    With the planned IPO having been pulled, DIDI is exploring measures to recoup from the financial and non-financial adverse effects of recent Chinese developments. Current and potential investors are hopeful that the Chinese government will facilitate the accessible expansion of the tech space with a reigning in of regulations.