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A top Chinese ride-hailing company delists from the NYSE just months after its IPO

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BEIJING – The Chinese ride-hailing platform Didi Chuxing says it will delist from the New York Stock Exchange and instead move to the Hong Kong Stock Exchange …
BEIJING – The Chinese ride-hailing platform Didi Chuxing says it will delist from the New York Stock Exchange and instead move to the Hong Kong Stock Exchange after coming under intense Chinese regulatory scrutiny. The announcement reflects the rapid reversal in the transportation company’s fortunes as China goes on a regulatory blitz targeting some of the country’s biggest private technology firms. « The rules are really tightening, » said Lester Ross, a Beijing-based partner at law firm WilmerHale. « It reflects real pressure… to tighten control over data, which is regarded as an integral element of national security. » In June, Didi clinched a highly anticipated $4.4 billion initial public offering on the New York Stock Exchange. Prior to its listing,10 times the number of investors subscribed to buy into Didi than there were available shares. Less two weeks later, Chinese state regulators under the country’s Cyberspace Administration announced they were investigating Didi and two smaller transportation platforms for potential national security violations. China now requires any platform with more than 10 million users, such as Didi, to undergo a state security review with the Cyberspace Administration in order to receive official permission to list abroad. Didi says it has about 600 million users, theoretically giving the company access to the addresses and travel history of many government employees who use the app — data that may have had to be shared with U.

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