Why DiDi Stock Crashed 20% Today
2022.04.18 13:41
Why DiDi (DIDI) Stock Crashed 20% Today
Shares of DiDi Global (NYSE:DIDI) are down more than 20% today after the Chinese ride-sharing company announced it has scheduled an extraordinary general meeting (EGM) on May 23 to vote on the delisting of its American Depositary Shares from the New York Stock Exchange (NYSE).
The Chinese ride-hailing company said it will not list its shares on another stock exchange until it completes delisting in the US. In the meantime, DiDi said it will explore different strategies including considering other stock exchanges for potential new listing plans in the future.
China’s authorities said on Saturday that DiDi itself made a decision to delist from the NYSE. According to the China Securities Regulatory Commission (CSRC), DiDi’s decision to delist is not associated with other US-listed Chinese stocks or negotiations with the United States to resolve an audit issue.
The company announced its plan to delist its US shares in December, saying it wants to list in Hong Kong after coming into conflict with Chinese regulators by completing its $4.4 billion US IPO in 2021.
Regulators in China ordered Didi to suspend its listing until a cybersecurity investigation of its data practices was completed.
Several days after the IPO, the Chinese cyberspace regulator has instructed app stores to remove 25 mobile apps managed by DiDi and ordered the ride-hailing giant to halt the registration of new users.
Following DiDi’s shareholder meeting announcement, a Chinese securities watchdog issued a statement saying that DiDi’s decision was not related to the other US-listed Chinese companies.
DiDi stock price is down over 20% today.
By Senad Karaahmetovic
