DIDI Plunges After China Asks The Company To Delist From The NYSE

DIDI Plunges After China Asks The Company To Delist From The NYSE

Groggy traders loading up trading terminals are greeted with an unwelcoming sea of red of stock and futures worldwide. One key pain point is China tech, where Beijing has unleashed even harsher crackdowns on ridesharing company Didi Global, reportedly asking to delist from the New York Stock Exchange.

According to Bloomberg, the Cyberspace Administration of China has requested Didi's top executives to develop a plan to delist from NYSE due to concerns about leakage of sensitive information. Proposals include privatization or a share float in Hong Kong.

Sources told Bloomberg that if privatization is the path regulators chose, the proposal would be around the $14 IPO price to avoid lawsuits or discontent among shareholders. There is also the possibility that regulators may withdraw the request.