![]() ![]() The US Securities and Exchange Commission has been calling on Chinese firms listed in the US to be more transparent with their books. Alibaba, for example, carried out a secondary listing in Hong Kong in 2019. In the past, listing in the US was seen as a hallmark of success, and some of China’s most prominent corporate crown jewels are listed in the US, most notably Alibaba, whose blockbuster 2014 IPO set a record.īut with both Chinese and US regulators enhancing scrutiny of US-listed Chinese firms, many have been flocking to Hong Kong, which is part of China but retains an independent financial system. The fate of Didi could also be a prelude to the end of the era of US-listed Chinese companies. Story continues Chinese stocks and US markets head for divorce Mainland China’s stock markets, meanwhile, are relatively younger and less connected to global institutional investors, and plans to relist there could have caused more worry among existing investors. Modi is enabling a handful of very large players to run India’s economyįor investors, Hong Kong is still likely seen as a more acceptable market given the similarities its trading regulatory system has with the US, he said. Investors of the company can continue holding its shares after the delisting, and resume trading when the company lists in Hong Kong,” said Shen Meng, director of Beijing-based boutique investment bank Chanson and Co. “A delisting is the only choice Didi has now, otherwise it may face even harsher scrutiny. The country increasingly sees data as a national asset, and is rolling out data regulations specific to different industries. The delisting of the company, which raised around $4.4 billion in its IPO in June, shows just how far China is willing to go to ensure the security of its data, be it private or public. ![]() Soon after the listing, Chinese authorities opened a cybersecurity review into the company and it has remained under unprecedented scrutiny ever since.ĭidi’s IPO came as China has been building a legal architecture to secure data generated by the country, as well as to deploy it as an economic good. The firm didn’t give a reason for the delisting, or a time frame for the Hong Kong listing.Ĭhina is getting worried about Africa’s indebtedness to itĭidi reportedly drew the ire of Beijing for pushing ahead with its US plans before fully addressing regulatory concerns about its data flowing overseas as a result of the listing. It also said it has started pursuing a listing on the Hong Kong Stock Exchange. 2), and said it will ensure its American depositary shares can be converted into “freely tradable shares” on another international stock exchange. The company announced the decision yesterday (Dec. A trader works during the IPO for Chinese ride-hailing company Didi Global Inc on the New York Stock Exchange (NYSE) floor in New York City, U.S., June 30, 2021.īeijing’s new focus on data security is forcing Chinese ride-hailing giant Didi Chuxing to depart the New York Stock Exchange less than six months after its more than $4 billion listing. ![]()
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