Following are some of the reactions to Ride Healing Giant Global’s (DIDI.N) decision to delist from the New York Stock Exchange and list in Hong Kong, bowing to pressure from Chinese regulators concerned about data security.
Didi angered Chinese authorities in July by advancing his 4. 4.4 billion IPO, despite being asked to stop it while his data methods were reviewed.
Shifara Samsuddin, Light Stream Research Analyst, who publishes on the research platform Smart Karma:
“As we expected, Didi will first delist its shares from the NYSE and start filing for listing on HKEX. The company is already facing a class action lawsuit in the United States, and we think Didi will buy back its shares at the same US IPO price. $ 14 per share. However, it may not be able to re-list its shares in HK at the same price (or even lower price) as the use of the user’s personal data will be strictly controlled by the state (which will place it at this point). Will keep A loss) and location issues such as liquidity etc.
“Beijing is also sending a warning to the entire Internet sector in China to be prepared for further regulations and is likely to keep foreign investors away from Chinese tech stocks for some time to come.”
Zhan Kai, lawyer at East and Concord Partners, Shanghai:
“Technically, Didi’s US list did not comply with Chinese data security regulations.
“From a political point of view, China and the United States have so far failed to reach an agreement on the supervision of US listed firms. Are. “
Wang Qi, CEO Fund Manager Megatrust Investment (HK), Hong Kong:
“Chinese ADRs face growing regulatory challenges from both the US and Chinese authorities. For most companies, this would be like walking on an egg shell trying to please both parties. Will make it easier. “
Nan Li, Associate Professor, Finance at Shanghai Jiaotong University, Shanghai:
“Well, then, no wonder. This is the only way for Didi to survive, and it’s probably a good thing for investors in the US market. There are other issues besides protecting Didi’s data.” By embedding financial services on their platforms, they have stopped paying drivers, charged higher fees for drivers, lent at higher interest rates, and so on. Attitude of drivers.
“I don’t think Didi deserves to be listed anywhere before separating data platform services from financial services, and setting up an effective protocol to manage and ensure the responsibility and benefits of drives. “
Justin Tang, Head of Asian Research at United First Partners, Singapore:
“Didi’s listing was largely anticipated following the crackdown following its IPO. It will now set a precedent for other companies on the US list, especially those with data concerns.”
The crackdown started with the wrong IPO of Ant. The Chinese government has already indicated that it will go beyond market expectations. It will take some time for the sentiments regarding Chinese names to melt.”
Kenny NG, Securities Strategist, Ever Bright Sun Hung Kai, Hong Kong:
“Didi’s plan to delist in the United States and I am convinced that Hong Kong’s stock listing will have a significant impact on the location decisions for future lists of major technology stocks. At the same time, this incident Assures the market that current industry oversight The number of technology stocks in the mainland will continue to rise, and the decline in stock prices of technology stocks listed in Hong Kong today reflects the same factor.
“On the other hand, Didi itself, the company also has its own unique factors. Because Didi’s business has a lot of data related to consumer information, regulatory authorities are paying special attention to it.”
Ming Lu, Aquatas Research Analyst, Shanghai:
“I don’t think this change will do any good for Didi’s investors. The authorities have not announced the final sentence on Didi and the investigation is still going on after more than 100 days. So far, Didi and her shares The risk to the holders is unlimited.
Kyle Rhoda, IG Analyst, Melbourne:
“In the short to medium term, this means fluctuations for market pockets that are really at the forefront of global trade and US-China geopolitics, and you may start to see some pressure on Hong Kong stocks, which The trend is noticeable. To raise capital in the United States but to establish itself in China and to derive most of its profits from the Chinese economy.
“This is especially important in the long run, because it is going to be one of those frogs in a scenario where, very slowly, very slowly, in terms of their economic relations between the United States and China, as well as their hostility.” It’s going to double. Together in the global financial system. “
Tom Nanlist, Senior Analyst at Consultancy Trivia China, Beijing:
“My two main points at this point are: If it is confirmed that the CAC is indeed the main culprit behind the push, then a big flex for the regulator. It will be a further indication of its growing power and influence. ۔
“Apparently the issue is data security, but we still don’t have a clear idea of what the specific concern is. That’s a great question.”