Written by Brenda Nakalema

Didi Stock Slumps On Reports Of Possible Hong Kong Listing Halt

U.S listed shares of Didi Global, the Chinese ride-hailing giant, dropped sharply following a Bloomberg report stating that the company …

113808974 – konskie, poland – september 06, 2018: didi displayed on a modern smartphone

U.S listed shares of Didi Global, the Chinese ride-hailing giant, dropped sharply following a Bloomberg report stating that the company had suspended preparations for its planned stock listing in Hong Kong.

Shares of the company dropped 13% to $2.94 in premarket trading. The stock has experienced a steep fall of as high as 32% in 2022 so far. According to the report released by Bloomberg, Didi suspended work on its plans for a stock listing in Hong Kong after failing to meet the Chinese regulator’s demands. The regulators demanded an entire overhaul of the company’s systems to prevent security and data leaks.

Didi delisted its shares in New York in December 2021, only a few months after going public. Shortly after the company’s IPO, Chinese regulators launched a probe into the company, accusing Didi of violating Chinese data privacy and national security laws. Chinese government agencies conducted a raid on the company offices for a cybersecurity review a few weeks later.

Didi initially raised $4.4 billion when it went public at the end of June, one of the biggest initial public offerings of the year.