DiDi Global drops after plan to delist in the U.S., move to Hong Kong (update)

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• Update 5:55pm: Updates shares.
• DiDi Global (NYSE:DIDI) fell 22% after the ride-hailing firm announced plans last night to delist from the New York Stock Exchange.
• The company's board has also authorized DiDi (DIDI) to pursue a listing of its class A ordinary shares on the Main Board of the Hong Kong Stock Exchange.
• The DiDi move to delist comes after Bloomberg reported last week that the Cyberspace Administration of China told DiDi to come up with a plan to pull its listing from the NYSE. The organization, which oversees data security in China, is said to be concerned about sensitive data leaking out from DiDi's (DIDI) operations.
• “The investor base of these Chinese stocks will have a dramatic change -- some American funds will have to exit forever,” Hao Hong, head of research at Bocom International Holdings Co Ltd., told Bloomberg. “The selling pressure should last for a short term since it’s caused by regulation change, not by their earnings concern.”
• Didi, whose shares had dropped 44% since its IPO in late June before today, moved ahead with its NYSE offering despite requests from Chinese regulators that it ensure the security of its data, sparking threats of severe penalties.

Comments

[innocent Player]

All dumb AZZZ answers on here, people don’t read investment books

[Jion]

No one gives a specific answer about what will exactly happen. As always, these situations offer big gains if you make the right bet.

[Vanamo]

So clumsly the way the entire situation has been dealt with from all sides.

[Jion]

@Vanamo at least with a lot of DD, some great opportunities came to my attention...

[Money&Money,LLC]

shush....Dont tell BillyB1980 ..He still thinks he and Munger have it ALL figured out..... BABA is great, Jinping is a hero.....

[techniques]

Only good thing about the DID episode is that the US will finally not allow auditing exceptions to US listed corporations from China.

[lyingtoourselves]

@techniques Doesn't mean a thing, SEC and feds tow the line for the Chinese who just don't report, standard operating procedure, no results, no exceptions..
An audit exception is any finding that falls outside of the expected results of an audit after going through the necessary steps.

[RCHOP]

can any one know what will happen to retail trader shares of didi. i do have put options what will happen to those. any one have any idea please post. thank you

[techniques]

@RCHOP Call and ask your financial institution: Fidelity, Robinhood, etc.

[RCHOP]

@techniques thank u I will

[Chris Lau]

Two articles already expired:
1/) Alibaba: How High Is The Risk Of Delisting In Reality
2) Alibaba Stock: The Truth About Delisting
Confirmation bias hurts portfolios.

First, CCP commands the DIDI de-listing.
Second, the SEC seeks VIE de-listing to PROTECT investors. China will not let US investors look at the books.

Need a fiver to offset Didi? seekingalpha.com/...

[Entreri]

Avoid all China stocks.

This company fleeced $5b off US investors.

[innocent Player]

@Entreri if people think like you then nobody makes $ in stock market. We only listen to billionaires

[Rye147]

I acquired a handful of shares, nothing excessive, but unfortunately it has gone tits up. When they delist - will that be a total loss? Or will they pay out a portion to existing shareholders?

[Chris Lau]

@Rye147 Did you ever own china mobile? The shares will convert to OTCMKTS, if your broker allows for it. If the broker doesn't allow pink sheet stocks, you are forced to sell. The forced selling creates a BUY for DIDI on the dip, then a sell upon de-listing for a tidy profit.

[Rye147]

@Chris Lau I did not own china mobile. I appreciate the information !

[Ice_Kold]

@Rye147 I think it will convert to HK shares. And if you're like me with a broker that doesn't allow you to trade in those markets, then you might need to call the broker in order to execute a sell trade once it converts.

[RCHOP]

What will happen to retail traders shares. I have put options what will happen to them. Any idea please post . Thank you

[EverydayJoeSchmo]

BABA next!

[TonicWasser]

This company has been through A LOT lately. Oh, and is it even profitable?