DD will leave the US Stock Exchange and list in Hong Kong

BEIJING: Chinese ride-hailing service company Didi Chasing Global Inc. said on Friday it would exit the New York Stock Exchange and list in Hong Kong. The ruling Communist Party has decided to tighten its grip on the tech industry.

There is no explanation for this in DD's one-line announcement, but this has led to a significant drop in share prices of DD and other tech giants such as the Ali Baba Group. Groups like Ali Baba were also hit by the campaign against data security and monopolies.

In July, the regulator said it would tighten controls on Chinese companies trading in overseas markets. Entrepreneurs for whom the government-run financial system is closed and they have raised billions of dollars from abroad. But Beijing has tightened its grip on them and promised to raise more money inside China.

The company will soon start delisting on the New York Stock Exchange on an immediate basis and begin the process of registering in Hong Kong. Hong Kong is a Chinese province, but its regulatory system is different. It allows foreigners to enter the stock market.

Didi Chasing is headquartered in Beijing and entered the market on June 30, raising 4.4 billion. Its share price plunged 25 per cent after the government announced that it would investigate how DD collects and manages customer data. The company denied any plans to buy back US shares.