Following Didi Global’s decision to withdraw from the New York Stock Exchange, reactions have arisen from different quarters to the planned withdrawal.
A Lightstream Research analyst, Shifara Samsudeen, expressed that it is believed Didi will buy back its shares at the same IPO price of U.S. $14 per share but may not be able to relist its shares in Hong Kong at the same price, but at a lower rate provided that there will be a rigid control by the state over its use of user’s personal data.
Zhan Kai, a lawyer at East & Concord Partners in Shangai also disclosed that technically, Didi’s U.S. listing does not conform with Chinese data security regulations, noting that the U.S. so far has failed to reach an agreement on supervising U.S. listed firms.
Similarly, Nan Li, an Associate Finance professor at Shangai Jiaotong University, Shangai, expressed that this is the only way Didi can survive, and may turn to be a good thing for the investors in the U.S. market.
In a further report, Wang Qi, a CEO at Fund Manager Megatrust Investment, Hong Kong, has said that Chinese ADRs face more regulatory challenges from both the U.S. and Chinese authorities, therefore, delisting will only make things simpler.
However, Tom Nunlist, Senior Analyst at Consultancy Trivium China, Beijing concluded that if truly the CAC is the main reason behind the decision, then it’s a big flex for the regulator.
