December 3, 2021

Didi Chuxing, the Chinese ride-hailing giant, announced Friday that the company is starting the work of delisting from the New York Stock Exchange (NYSE) and initiating preparations for listing in Hong Kong. One day before Didi made the statement, the US Securities and Exchange Commission (SEC) issued a mandate requiring foreign companies listed in the US to provide audits for inspection. Otherwise, they could be delisted from NYSE and Nasdaq in three years. The new SEC regulation clearly targets Chinese companies listed in the US. Analysts believe that it could lead to more than 200 companies being kicked off US exchanges. 

Didi is the first Chinese company which announced it would delist from the NYSE after the SEC issued its new regulation. The company got listed in the US in June without the approval of Chinese regulatory authorities, sparking concerns that the information of hundreds of millions of Chinese users would be leaked to endanger China's national security. More than 20 apps linked to the company were subsequently removed from mobile stores. The SEC's new regulation has compressed Didi's space for financing in the US from the other direction.

In recent years, China-US relations have been going downward because of the US unilateralism. Strategic distrust between the two countries continues to expand and erode the scarce mutual trust. The trade war, technological war and geopolitical containment launched by the US against China came one after another and even jeopardized the foundation and atmosphere of financial cooperation. There have already been voices in the US demanding most of the "China concept stocks" be removed from the US. Scrutiny of "China concept stocks" is expected to get stricter. The US provides various excuses such as "financial security" and "national security" for such scrutiny.

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https://www.globaltimes.cn/page/202112/1240609.shtml