China's dominant ride-hailing service, Didi Global Inc., has said it will pull out of the New York Stock Exchange and shift its share trading to Hong Kong, as the ruling Communist Party tightens control over tech industries. China's cyberspace regulator said in July “serious violations” were found in how Didi collected and stored personal information. Didi was later ordered to remove 25 of its apps from online stores.
Didi's share price fell 25 per cent after regulators launched an investigation into its handling of customer data following its June 30 stock market debut. "After conscientious research, the company will start delisting operations on the New York Stock Exchange immediately and commence preparations to list in Hong Kong," Didi said on its social media account on Friday. A separate statement said US shares would be converted into freely tradable shares on another internationally recognised" exchange.
Didi, founded in 2012 as a taxi-hailing app, has expanded into other ride-hailing options including private cars and buses. It says it also is investing in electric cars, artificial intelligence and other technology development.
The crackdown is not a novel phenomenon. The ruling CCP began tightening control over China's fast-changing internet industries last year, launching anti-monopoly and other investigations. Chinese leaders are concerned about the influence of e-commerce, social media and other companies that pervade the lives of China's public. Most are privately operated.
In April, Alibaba Group, the world's biggest e-commerce platform, was fined $2.8 billion on charges of violating anti-monopoly rules. Other companies have been penalised on charges they violated rules on privacy, censorship and disclosure of acquisitions.
