China’s ride-hailing giant Didi Chuxing will say goodbye to the U.S. stock market in June, just one year after its public debut on Wall Street.
According to Apollo News, Didi announced that it officially applied to the U.S. Securities and Exchange Commission on June 2. Ten days later, the company would delist its shares on the New York Stock Exchange 10.
Didi’s announcement comes after it held an extraordinary shareholders meeting on May 23. At the meeting, 96% of its stakeholders voted in favor of delisting from the U.S.
Didi then submitted the delisting application to the U.S. regulators.
DiDi made its debut on the New York Stock Exchange on June 30, 2021, marking the biggest IPO of a Chinese company on an American exchange since Alibaba’s listing in 2014.
Didi insisted on listing in the U.S. market on the eve of the 100th anniversary of the Chinese Communist Party (which took place on July 1), regardless of official doubts and objections. Its listing angered the top officials of the communist regime, who were worried about national security and public interest.
Soon after its IPO, the Chinese authorities decided to launch a probe into DiDi for allegedly violating its data privacy and national security laws. The government agencies raided DiDi offices for a cybersecurity review a few weeks later.
Last year, the Cyberspace Administration of China also ordered app stores to remove 25 apps operated by Didi Chuxing.
The authorities demanded Didi stop registering new users.
The move was part of the regulator’s 2021 broader crackdown on technology giants and Internet giants, who have amassed troves of confidential data that authorities consider sensitive.
As the Wall Street Journal reported on June 6, China is preparing to conclude the probe into Didi. The journal citing sources said that the authorities plan to allow Didi mobile apps back on domestic app stores as early as this week.
Besides DiDi, the regulators also plan to allow logistics platform Manbang Group and workplace information platform Kanzhuan.com to relist their app stores.
These steps are the latest sign that China wants to spur economic activity, including from the country’s beleaguered tech giants.