China’s ride-hailing firm Didi to switch listing from New York to Hong Kong | Technology sector

The Chinese ride-hailing firm Didi is to transfer its listing from the New York stock alternate to Hong Kong, as Beijing cracks down on the nation’s greatest expertise firms.

The company mentioned it could begin “immediate” preparations to delist in New York and put together to go public in Hong Kong.

“After a careful study, the company will start delisting on the New York stock exchange immediately, and start preparations for listing in Hong Kong,” the company posted on its Weibo account on Friday, a Twitter-like service in China.

It comes lower than six months after Didi made its $4.4bn (£3.3bn) flotation in New York, making it the most important listing by a Chinese company within the US since Alibaba in 2014, solely to see buyers sharply unload shares days later as China’s web regulator ordered its ride-hailing app to be taken off home app shops.

It was additionally banned from signing up new customers, and subjected to a “cybersecurity review”, as Beijing flexed its muscle to curtail Didi’s worldwide enlargement plans. In August, Didi suspended plans to launch in Europe and the UK, the place it had secured licences to function in Manchester, Salford and Sheffield.

Didi, which is so dominant in its residence market that Uber pulled out of China in 2016 in alternate for a stake, mentioned its board had authorised the company to guarantee its shares “will be convertible into freely tradeable shares of the company on another internationally recognised stock exchange”.

Didi’s delisting is the most recent growth in a long-running crackdown on the rising energy of China’s tech firms by Beijing.

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Last year, regulators stepped in on the final minute to block the $34bn flotation of Jack Ma’s Ant Group, which might have been the most important ever company fundraising.

In April, Ma’s Alibaba paid a file $2.8bn high quality to settle an investigation by Chinese regulators into anticompetitive practices on the e-commerce company.

Authorities started to give attention to companies owned by Ma, one among China’s hottest, outspoken and wealthiest entrepreneurs, after he gave a blunt speech final year criticising nationwide regulators, which reportedly infuriated the president, Xi Jinping.

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