Chinese app monstrous Didi plans to exit the U.S. stock market and move to Hong Kong

Chinese auto giant Didi Global has announced that it will withdraw its shares from the NYSE and move its listing to Hong Kong. The company has been under heavy pressure. Within days of going public (IPO), Beijing announced a crackdown on technology companies registered overseas.

The U.S. market regulator announced tough new rules for registering Chinese companies in America on Thursday. "After careful research, the company will immediately begin delisting on the New York Stock Exchange and prepare for listing in Hong Kong," the company said on its Weibo account, China's Twitter microblogging network.

In a separate statement in English, Didi said his board had approved the move, adding, "The company will hold a shareholder meeting at an appropriate time in the future to vote on the above matter according to the required procedures." In late June, Didi - China's response to Uber - raised $4.4 billion (£3.3 billion) in a New York IPO.

However, trading stalled on the first day as investors weighed concerns over tensions between Washington and Beijing and the issues raised by U.S. regulators over financial reports of some Chinese companies. Within days, China's online regulator ordered online shops not to offer the Didi app, alleging that it illegally collected personal information from users.

China's Cyberspace Administration (CAC) said it was investigating the company to protect "national security and public interest." In response, Didi tell in a statement: "The company will endeavor to resolve any issues, raise its awareness of avoiding technological risks and opportunities, protect the confidentiality and security of user data, and continue to provide safe also convenient services to its customers.

Didi also warned that removing his app from Chinese stores would hurt his sales.

Like many other Chinese tech companies, Didi is under pressure from regulators in the U.S. and Europe. On Thursday, the U.S. Securities or Exchange Commission said it had finalized a rule meaning foreign companies registered overseas could be exempted if their auditors failed to comply with requests for information of regulators.

The law was passed in 2020 then Chinese regulators repeatedly rejected requests from U.S. authorities to review the accounts of Chinese companies that had traded and traded in the United States.

In August, a company source told the news that planned launches in the U.K. and continental Europe had been put on hold. Japan's SoftBank is Didi's most significant single investor with a stake of more than 20%. It is backed by Chinese technology giants Alibaba or Tencent. Uber also owns a stake in the company through its Didi takeover of Uber China in 2016. Didi Global shares have lost more than 40% of their value since their debut in the U.S. market.