“Didi” Was Requested by the CCP Authorities To Delist From the United States

【Japan Himalaya League】 Author: Zichen  Translator: Zhezhe

The Epoch Times reported on November 26 that Didi travel, which was listed on June 30 this year, was recently requested by the CCP authorities to delist from the United States.

Bloomberg News quoted an anonymous person as reporting that the CCP asked Didi Travel’s senior management to formulate a delisting plan from the New York Stock Exchange on the grounds of so-called fear of sensitive data leakage.

Sources said that the options under evaluation include direct privatization or issuance of shares in Hong Kong and then delisting from the United States. If privatized directly, the repurchase stock price is at least the original initial public offering (IPO) price, that is, $14, to avoid litigation; if it goes to Hong Kong for a second listing, the IPO price may be slightly lower than that of the U.S. stock price. However, no matter which plan is adopted, it will cause huge losses to Didi.

This summer, Didi continued to issue shares in New York despite regulatory requirements to ensure data security. The outside world believes that Didi’s IPO in the United States is the key factor angering the CCP authorities. The CCP thought it was a challenge to its authority, so it began to suppress Didi in many ways and considered delisting it.

Photo from The Epoch Times

An analysis report by the Wall Street Journal pointed out that Didi has 3.77 billion annual active users and 1300 million annual drivers in Communist China. Individuals using Didi service will hand over their mobile phone numbers, which are associated with their real names and identity certificates. At the same time, Didi drivers must also provide Didi with their real names, vehicle information, criminal records, and credit and bank card information.

According to the report, it is precisely because of the large amount of user, map and traffic data owned by Didi that the CCP is under great pressure.

Bloomberg News also pointed out that delisting may only be part of Didi’s punitive measures. Because before that, the CCP government had proposed to invest in the company to give state-owned enterprises control. Didi may therefore be forced to hand over its data control to a trusted third party of the CCP.

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Edited & Posted by: Ranting

Disclaimer: This article only represents the author’s view. Gnews is not responsible for any legal risks.

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