Didi’s detour to New York was bumpy and quick. Its journey again towards Hong Kong received’t be any smoother. However the route of journey—not just for it, but in addition for many of its massive Chinese language friends—is obvious. The period of large-scale Chinese language listings within the U.S. for any firm with remotely delicate knowledge is over.
The Chinese language ride-hailing big stated Thursday that it plans to delist its shares in New York, lower than six months after its $4.4 billion preliminary public providing, and search a list in Hong Kong as a substitute. The weird transfer is clearly geared toward placating Chinese language regulators, which blocked the corporate’s China enterprise from including new customers shortly after Didi went public. The corporate went forward with its IPO regardless of regulators’ suggestion that it ought to delay on account of data-security considerations. Shares of Didi have nearly halved from its IPO value.