Despite its recent tumultuous period, Didi stock has shown strong growth. As the end of the COVID-19 lockdown, growth could accelerate significantly. Meanwhile, China’s Vice-Premier has made remarks that could pave the way for a new wave of overseas listings for Chinese tech firms.
Management team says it will vote in favor of the move to withdraw from the New York Stock Exchange.
Despite the success of Didi’s IPO last June, the Chinese ride-hailing company has faced several challenges. Beijing has imposed pressure on Didi to stop using unlicensed vehicles and to curb its data collection operations.
The cybersecurity agency of China (CAC) launched an investigation into Didi after the IPO. It alleged that Didi had violated national security laws and ordered {to suspend new registrations. Didi has also been accused of violating the privacy of its users.
Amid all these issues, Didi stock has fallen from a high of $14 to $1.50. Investors have watched as the shares have lost 90% of their value. Didi executives believe that the best solution is to delist from the NYSE and trade its claims over the counter.
Beijing denies U.S. regulators access to audit documents
Earlier this month, the PCAOB met with Chinese officials to discuss the matter. It is believed that a deal is close to being finalized. The agreement appears to be a rare concession from Beijing. It also seems to lay the foundation for proactive cooperation.
According to Bloomberg, redactions in the audit documents are the critical barrier to the deal. In addition, these alterations will likely deter auditors from flying to China to complete their audits.
Chinese regulators have denied U.S. audits of Chinese companies for years. First, they want to control the flow of information. They want to prevent sensitive data leaks, particularly to foreign law enforcement agencies. Besides, the domestic audit industry is regulated by the Ministry of State Security. This is a more complex interagency than a decade ago.
China’s Vice-Premier’s remarks pave the way for new overseas listings of Chinese tech firms.
During a meeting of China’s top political consultative body, the CPPCC National Committee, Chinese Vice Premier Liu He said the government supports and encourages the public listing of technology companies, particularly in capital markets. He also pledged the country’s support for developing the platform economy.
The meeting was a chance to reaffirm China’s position on the digital economy. In addition, it was expected to inject positive energy into the world with changes and send positive messages about genuine multilateralism.
Amid the regulatory crackdown on Chinese tech firms, Beijing has been stepping up efforts to mitigate uncertainties for issuers seeking overseas listings. Vice Premier Liu made soothing comments to tech executives during the meeting. Specifically, he said the government would work towards a proper and stable management of the government-market relationship. He also encouraged platform firms to participate in major national sci-tech innovation projects.
Growth could accelerate significantly as COVID-19 lockdowns end.
Despite the latest crop of sexiest babes on the block, the economy is still reeling from the effects of Russia’s invasion of Ukraine and has not yet bounced back from a slowdown in China. The Global Economic Prospects report by the World Bank has the world’s largest economies on the road to recovery, but it’s not just the U.S. and Europe that need a boost.
The United States has created more jobs than it has lost since President Obama was elected to office. Moreover, the Fed’s latest Beige Book report indicates that job creation will remain solid throughout the decade, with an estimated 6.6 million jobs added to the bloated labor force in 2021. This is despite a gloomy outlook for the global real estate market.
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