Didi Chuxing Technology Co., formerly Didi Dache and Didi Kuaidi, is a Chinese vehicle-hire company with a large user base and millions of drivers. The company was founded in 2010 and has since expanded into many other countries, including the US, Japan, and India. The company has 550 million users and tens of millions of drivers.
In its initial public offering, Didi Global raised $4.4 billion. However, the company subsequently retracted from the New York Stock Exchange in an effort to convince Beijing to let the company resume signing up new customers. Beijing has been increasingly worried about Didi’s plans to list on Wall Street, citing fears that US regulators would gain access to sensitive domestic data. In December, the company announced it would delist from the NYSE and list its shares in Hong Kong.
After the IPO, Didi warned investors that it faced regulatory risks. Despite warnings from regulators, DiDi decided to go public without fixing its underlying problems. The CAC asked the company to postpone the IPO, but didn’t issue a formal order to cancel it. Instead, the company proceeded with the planned debut.
While some experts believe that mainland Chinese companies should be allowed to list their shares in the US, others are not so sure. While Hong Kong is a key market for Chinese companies, experts disagree about the future of these companies on the US financial markets. Few expect that the number of Chinese companies listed on Wall Street will increase in the next couple of years.