DiDi Global Inc (fka DIDIY)

[nicehit]

The peeps should sue crammer. He did say buy... buy the next Uber.

However, if the Chinese govt backs off a bit DIDI will rebound hard.

[wEaReLeGiOn]

Balls of titanium ATM, for sure.

I lack the element today..

[NYCPuglet]

Cramer told everyone to buy as much as you can. LOL

[UpTickMeA$AP]

It happens. Authoritarian places can be very dangerous to put capital in.

[JohnCM]

My worst call in decades.

[nicehit]

Maybe not! Got a feeling in the long run this may turn out ok.

[FairviewInvestor]

disaster for longs

[UpTickMeA$AP]

DIDI said to halt listing in hong Kong? Cyber security risks?

Wow!

This thing is going to .00001

[DMOST]

China's Didi reverses course, will remain in Russia

BEIJING (Reuters) - Chinese ride-hailing giant Didi Global said on Saturday that it would continue to operate in Russia, reversing a decision announced on Monday that it was leaving that country as well as Kazakhstan.

No explanation was given. Didi did not immediately respond to a request for further comment.

On Monday, Didi said it was leaving Russia on March 4, about a year and a half after launching services there. It has been in Kazakhstan for about a year.

"Unfortunately, due to changing market conditions and other challenges, it has become clear at the moment we will not be able to provide the best results in Russia and Kazakhstan," it said on Monday.

Neither statement mentioned geopolitical factors in the decision, but some critics online said the timing of the move opened Didi to accusations of succumbing to U.S. pressure on Russia, which invaded neighbouring Ukraine on Thursday.

Saturday's statement did not mention Kazakhstan.

The Chinese government has called for dialogue on Ukraine but has refrained from condemning Russia's attack or calling it an invasion.

Didi has had a turbulent time since it went public last summer in New York. Under pressure from Chinese regulators concerned about data security, Didi in December said it will delist from the NYSE and pursue a Hong Kong listing.
https://finance.yahoo.com/news/chinas-didi-reverses-course-remain-083223697.html

GO DIDI

"PEACE"

Unfortunately we never heard the previous new of such...

[make it happen]

Another thing bugs me a little is a $20,000,000,000 billion market cap and has shares structure like a triple zero otc over 4.8 billion shares. Feels bloated imo

[make it happen]

One thing I've been wondering. When delists thinking otc fade. Kinda heavy info 20% work force gone and delisting from NYSE.

[JohnCM]

There are OTC stocks that are dollars, sometimes hundreds. The foreign issue tickers are 5 letters ending in F. Or they might offer an ADR. I like the company but will not trade anything on the HUNG SEGN.

[DMOST]

My opinion was that. Conventional wisdom leans towards it being on the OTC as a penny stock.

However, DIDI is huge and has entrapped a great deal of Institutional holders, capped with some very large caches of shares.

That being said, special consideration is a distinct possibility, that may be given to DIDI, because of the way things turned out and may given an exception.

Even after they have attempted to de-list from the exchange. NYSE may not accept the de-listing.....It's possible?


GO DIDI


"PEACE"

https://www.investopedia.com/terms/p/pennystock.asp

[JohnCM]

I am talking about after NYSE delisting. Will there be ANYTHING listed in America? I do not trade on the HUNG SEGN.

[DMOST]

Sir, technically as they are below $5 bucks, they are already a penny stock.

What Is a Penny Stock?

A penny stock typically refers to the stock of a small company that trades for less than $5 per share. Though some penny stocks trade on large exchanges such as the New York Stock Exchange (NYSE), most trade via over-the-counter (OTC) transactions through the electronic OTC Bulletin Board (OTCBB) or through the privately-owned OTC Markets Group. There is no trading floor for OTC transactions. Quotations are also all done electronically.

Penny Stocks Explained

In the past, penny stocks were considered any stocks that traded for less than one dollar per share. The U.S. Securities and Exchange Commission (SEC) has modified the definition to include all shares trading below five dollars. The SEC is an independent federal government agency responsible for protecting investors as they maintain fair and orderly functioning of the securities markets.

Penny stocks are usually associated with small companies and trade infrequently meaning they have a lack of liquidity or ready buyers in the marketplace. As a result, investors may find it difficult to sell stock since there may not be any buyers at that time. Because of the low liquidity, investors might have difficulty finding a price that accurately reflects the market.
https://www.investopedia.com/terms/p/pennystock.asp

Conventional wisdom leans towards it being an OTC. However, DIDI is huge and has entrapped a great deal of Institutional holders, capped with very large cache of shares.

That being said, special consideration is a distinct possibility, that may be given to DIDI, because of the way things turned

GO DIDI


"PEACE"

WE WILL SEE!

[JohnCM]

When they delist do you think there be an ADR or foreign issue OTC ticker?

[DMOST]

China's foreign listing regulations that mandate cybersecurity reviews apply to Hong Kong, experts say

In this article:

DIDI
-4.48%

Chinese companies handling data from more than 1 million users are required to go through a cybersecurity review if they want to list overseas, and that includes Hong Kong, according to an assessment endorsed by China's cyberspace watchdog.

The conclusion, included in the "expert views" that the Cyberspace Administration of China (CAC) published on its website, shows how the regulator is empowering itself to be a key gatekeeper of overseas listings even though the new law, which came into effect this week, does not specifically mention Hong Kong.

According to the Cybersecurity Review Measures, a regulation jointly signed off by 13 Chinese ministerial bodies, Chinese internet companies seeking to go public in a "foreign" market must go through a cybersecurity review by the cybersecurity Review Office, a unit inside the CAC.

review

The regulation, however, left open the question of whether it covers Hong Kong, which is not a "foreign" market, but is run as a separate legal system under the "one country, two systems" framework.

The CAC has not officially clarified whether a company seeking to list in Hong Kong must file for a cybersecurity review.

In the first expert interpretation, Qi Yue, an engineer from the China Cybersecurity Review Technology and Certification Centre (CCRC), wrote that Chinese internet operators cannot ignore cyberspace, data and national security risks in the process of listing in Hong Kong, even though the regulation does not specifically mention the city.

Qi added that only those already listed abroad would be exempt from such reviews.

All other cases, including initial public offering (IPO), direct public offering, acquiring a special-purpose acquisition company (SPAC), and reverse takeovers (RTO), need to undergo the review procedures, Qi said.

The CCRC is the agency designated to accept documents from companies for their cybersecurity review. Created in 2006 by China's market regulator, the agency's website says it provides "technical support for cybersecurity reviews".

Another internet company source, who has worked with CCRC on multiple projects, said it has been largely toothless in the past and often tried to sell certification services to tech firms.

A second expert view from Hu Ying, who heads the data security department at the China Electronics Standardisation Institute, said companies seeking a listing in Hong Kong "shall still be assessed in accordance with the relevant provisions of the security review of cross-border data transmission", regardless of the fact that Hong Kong is not mentioned directly.

China's cybersecurity review system came under the spotlight last summer after Chinese ride-hailing giant Didi Chuxing defied the wishes of Chinese regulators by going ahead with a US$4.4 billion IPO in New York, later described as a "deliberate act of deceit".

The IPO prompted the CAC to tighten regulations and initiate an on-site data security investigation of Didi's offices. It also ordered Didi to remove 25 apps from app stores and barred the company from accepting new customers. The investigation has not yet issued any official conclusions.

In December, Didi said it would delist from the New York Stock Exchange and explore a listing in Hong Kong. Didi's bankers have held preliminary discussions with Hong Kong Exchanges and Clearing Limited for a listing that may take place in the second quarter, the Post reported last month.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2022 South China Morning Post Publishers Ltd. All rights reserved.
https://finance.yahoo.com/news/chinas-foreign-listing-regulations-mandate-093000575.html

GO DIDI

"PEACE"

[DMOST]

Didi’s Brief U.S. Foray Is Ending. What Happens Next?

In this article:

DIDI
+2.34%

(Bloomberg) -- Didi Global Inc. is preparing to delist from the New York Stock Exchange, after its initial public offering there last year drew the wrath of Beijing. The Chinese ride-hailing giant said it plans to list in Hong Kong instead, allowing existing shareholders to convert their holdings in the company. There are challenges ahead -- for Didi, its shareholders and other Chinese companies looking to go public. Meanwhile, the government’s ongoing investigation and new regulatory measures have hit Didi’s bottom line hard.

1. Why is Didi going to delist?

Chinese regulators opposed the U.S. listing, saying it could expose Didi’s vast troves of data to foreign powers. The firm pressed ahead with the June IPO anyway, in a move that Beijing saw as a challenge to its authority. Days after the listing, the government announced a cybersecurity probe into the firm and forced its services off domestic app stores. Later the Cyberspace Administration of China, the agency responsible for data security, was said to have asked Didi’s top executives to devise a plan to delist because of concerns about leakage of sensitive data.

2. How will it work?

Didi said it aims to list on the Hong Kong Stock Exchange and ensure that its American depositary shares can be swapped for “freely tradable shares of the Company on another internationally recognized stock exchange,” according to a statement. The firm is planning to file for the Hong Kong listing around March, people with knowledge of the matter have told Bloomberg News. The entire process could take months from that point.

3. What are the challenges?

Prior to its U.S. IPO, Didi had weighed a potential Hong Kong listing but abandoned the effort after the city’s exchange questioned its compliance with Chinese regulations, such as having licenses in all the cities where it operated. (The Hong Kong exchange makes far more stringent demands on companies seeking a listing than its New York peers.) In preparation for its new listing, the company is said to be planning to reduce its headcount by as much as 20%, not including drivers. Didi in December disclosed a $4.7 billion loss in the September quarter after revenue slid 13% from the previous three months. Even if Didi pulls off a listing in Hong Kong, some investors may choose this opportunity to sell rather than swap their shares, which have fallen drastically. Technically speaking, swapping the U.S. shares for stock in Hong Kong should be relatively straightforward for most institutional shareholders. But the new securities may trade with a valuation discount: Hong Kong has long been home to some of the world’s lowest price-to-earnings ratios.

4. Why is this such a big deal?

Didi’s blockbuster IPO was the second-biggest in the U.S. by a company based in China (Alibaba Group Holding Ltd.’s was bigger) and gave Didi a market value of about $68 billion. The listing, which was shepherded by a who’s who of Wall Street banks, appeared to be a model for how international investors could tap into China’s red-hot tech sector. Didi’s largest shareholder was Japan’s SoftBank Group Corp., with more than 20%.

5. Will China force other companies to change listings?

Didi’s exit is unlikely to be the last. The Chinese internet regulator began probing two more U.S.-listed companies, Full Truck Alliance Co. and Kanzhun Ltd., soon after launching the review into Didi. In December the government unveiled tighter regulations for Chinese companies seeking to go public abroad using the so-called variable interest entity (VIE) structure, as Didi did. Meanwhile, the U.S. is moving to implement a new law that mandates foreign companies open their books to U.S. regulators or face delisting starting in 2024. The U.S. Securities and Exchange Commission says that only two jurisdictions historically have not allowed the required inspections, China and Hong Kong.

6. Will this end Didi’s troubles?

Unlikely. The cybersecurity probe into Didi is ongoing, and regulators may still impose an array of punishments such as a fine, suspension of certain operations or the introduction of a state-owned investor. The municipal government of Beijing, where Didi is based, was said to have proposed that the Shouqi Group -- part of the influential Beijing Tourism Group -- and others acquire a stake in Didi, which would give control to state-run firms. Media including the South China Morning Post have reported that regulators may force Didi to reshuffle its top management. Didi has put forth several proposals to appease the cybersecurity regulator, including ceding management of its data to a private third party. President Xi Jinping’s campaign to achieve “common prosperity” has heaped pressure on platform companies like Didi to offer better wages and benefits to its army of drivers. More fundamentally, the Chinese government is expected to maintain strict curbs on and scrutiny over big tech enterprises like Didi that amass sensitive data.
https://finance.yahoo.com/news/didi-brief-u-foray-ending-061802436.html

GO DIDI

"PEACE"

[DMOST]

Didi to Cut Up to 20% of Jobs Before Hong Kong Listing

(Bloomberg) -- Chinese ridehailing giant Didi Global Inc. plans to reduce its overall headcount by as much as 20% as the troubled tech firm pushes ahead with plans to transfer its stock-market listing to Hong Kong, people with knowledge of the matter said.

Most of the company’s core businesses will be affected by the cuts, which are aimed at reducing expenses ahead of the Hong Kong listing, the people said, asking not to be identified as the information isn’t public. Ridehailing may see staff reductions of up to 15%, one of the people said, though drivers -- gig workers who aren’t officially included in the company’s headcount -- won’t be affected.

A Didi representative didn’t immediately comment on the job reductions, which were first reported by Chinese media Late Post. The plans have not yet been finalized and could still change. The company has already pared investments in once red-hot businesses like community grocery buying, some of the people said. Some units like Didi Finance, which is expanding outside China, and its autonomous driving business will be less impacted, another person said.

Didi, which pulled off its $4.4 billion U.S. initial public offering in June against Beijing’s wishes, has emerged as one of the biggest targets of a crackdown by Chinese authorities. Days after its listing, the company was placed under a cybersecurity probe and its services were taken off Chinese app stores. Months later, Didi announced it was planning to withdraw from the New York Stock Exchange and instead seek a new listing in Hong Kong, a move aimed at allaying concerns over the potential exposure of its data to foreign powers.

What Bloomberg Intelligence Says:

Didi slashing up to 20% of its workforce including up to 15% in its core ride-hailing business, as reported by Bloomberg News, could lift profitability before its planned Hong Kong IPO and U.S. delisting. Margins in its domestic ride-hailing business were hit in 2021 by competitive and regulatory pressure on pricing and costs, so a narrowed cost base could right-size the business for the slower growth that’s now expected.

Shares of Didi have dropped nearly 70% from its offering price. The Beijing-based company revealed a $4.7 billion loss after revenues shrank in the September quarter following the regulatory assault against the tech firm.

Investors now await the final penalties stemming from the cybersecurity probe, as well as more details on how Didi, which is backed by SoftBank Group Corp. and Tencent Holdings Ltd., intends to transfer its shares to Hong Kong.

The market has priced in a possible penalty of 10 billion yuan ($1.6 billion) stemming from the government’s probe into Didi, Bernstein analysts led by Cherry Leung wrote in a report Monday that said “the regulatory storm is largely over.”

The company saw order share drop only 7 points to 74% in December, compared with the No. 2 player’s 16%, and Didi is expected to invest in marketing shortly after resuming new customer acquisition, the analysts added.

But in a sign that Beijing isn’t letting up on efforts to curb its tech companies, eight government departments including the ministries of transport and public security this week pledged to tighten regulations governing the car-hailing industry.

Rules for drivers and vehicles taking to the streets for the first time will be tightened, according to the statement published by the transport regulator.
https://finance.yahoo.com/news/didi-cut-20-jobs-hong-040940119.html

GO DIDI

"PEACE"

[DMOST]

So, as it turns out. The shares reported, where already held, but not reported earlier.
https://finance.yahoo.com/news/didi-shares-climb-tencent-boosts-144113595.html

But still it also appears they did and have not sold them.....STILL HOLDING!

GO DIDI

"PEACE"

How long, how long will the bull $hit go on.

[DMOST]

Didi Shares Climb as Tencent Boosts Stake in Chinese Ride-Hailing Giant

In this article:

(Bloomberg) -- Didi Global Inc. shares got a shot in the arm after one of its largest shareholders increased its stake in the company.

Shares of the Chinese ride-hailing firm rose as much as 5.8% Thursday, their fourth straight day of gains, after a regulatory filing showed that Tencent Holdings Ltd. added about 1.8 million Class A ordinary shares to its holdings. The move raises Tencent’s total ownership of Didi to 7.4% as of Dec. 31, up from the 6.4% that had been disclosed ahead of its June initial public offering.

“The increased stake indicates Tencent’s confidence in Didi, while providing another indication that China’s Internet regulatory cycle is likely over,” said Brendan Ahern, Chief Investment Officer at Krane Funds Advisors LLC.

Tencent’s boosted stake in Didi is a much needed show of faith for the stock which has been decimated by regulatory crackdowns since its trading debut last year. The firm has seen its market value plunge by nearly $50 billion in the span of less than eight months after authorities in China raised concerns about its data security. Didi said in December that it has begun making preparations to withdraw from U.S. stock exchanges and pursue a listing in Hong Kong.

The move also stands in stark contrast to other changes in Tencent’s holdings in recent months. In early January the e-commerce firm cut its holdings of Singapore’s Sea Ltd., fueling speculation that it was planning to pare back its ownership in other Chinese tech firms. That came less than a month after Tencent told investors it planned to divest more of its stake in JD.com Inc. by handing out more than $16 billion of shares as a one-time dividend.

Didi’s four-day rally comes in the wake of news that Chinese state-backed funds had intervened in domestic stock markets Tuesday, rekindling hope that a bottom is near for the nation’s battered equities. Didi’s winning streak would be its longest since October.
https://finance.yahoo.com/news/didi-shares-climb-tencent-boosts-144113595.html

GO DIDI

"PEACE"

[nicehit]

Somebody buying good volume

[nicehit]

It will drop to the OTC. Then uplist when all the BS clears.

[UpTickMeA$AP]

It's already been filed.. This thing is just waiting to die in the U.S.

The end.

[nicehit]

Didi will be listed in an exchange in the US. They won't let this die, to many lawsuits if they disappeared in the US.

[DMOST]

Strategic Vision Investment Ltd Buys Amazon. ...

insider
Tue, February 8, 2022, 8:38 AM
In this article:

SE
+2.56%
BZ
+5.42%
XM
+3.56%
AMZN
+1.19%
ACMR
+1.78%
DIDI
+8.73%
IMAB
-6.05%

Investment company Strategic Vision Investment Ltd (Current Portfolio) buys Amazon.com Inc, Qualtrics International Inc, I-MAB, DiDi Global Inc, ACM Research Inc, sells Sea, Kanzhun, Stem Inc, New Frontier Health Corp during the 3-months ended 2021Q4, according to the most recent filings of the investment company, Strategic Vision Investment Ltd. As of 2021Q4, Strategic Vision Investment Ltd owns 14 stocks with a total value of $59 million. These are the details of the buys and sells.

New Purchases: AMZN, XM, IMAB, DIDI,

Added Positions: ACMR,

Reduced Positions: STEM, ADAG,

Sold Out: SE, BZ, NFH,

Warning! GuruFocus has detected 7 Warning Signs with ACMR. Click here to check it out.

ACMR 15-Year Financial Data

The intrinsic value of ACMR

Peter Lynch Chart of ACMR


For the details of Strategic Vision Investment Ltd's stock buys and sells,
go to https://www.gurufocus.com/guru/strategic+vision+investment+ltd/current-portfolio/portfolio

These are the top 5 holdings of Strategic Vision Investment Ltd

iShares China Large-Cap ETF (FXI) - 297,600 shares, 18.45% of the total portfolio.

Amazon.com Inc (AMZN) - 3,100 shares, 17.52% of the total portfolio. New Position

Qualtrics International Inc (XM) - 251,100 shares, 15.07% of the total portfolio. New Position

ARK Innovation ETF (ARKK) - 83,600 shares, 13.40% of the total portfolio.

ACM Research Inc (ACMR) - 71,900 shares, 10.39% of the total portfolio. Shares added by 30.25%

New Purchase: Amazon.com Inc (AMZN)

Strategic Vision Investment Ltd initiated holding in Amazon.com Inc. The purchase prices were between $3189.78 and $3696.06, with an estimated average price of $3427.48. The stock is now traded at around $3158.710000. The impact to a portfolio due to this purchase was 17.52%. The holding were 3,100 shares as of 2021-12-31.

New Purchase: Qualtrics International Inc (XM)

Strategic Vision Investment Ltd initiated holding in Qualtrics International Inc. The purchase prices were between $31.27 and $47.24, with an estimated average price of $38.66. The stock is now traded at around $29.490000. The impact to a portfolio due to this purchase was 15.07%. The holding were 251,100 shares as of 2021-12-31.


New Purchase: Amazon.com Inc (AMZN)

Strategic Vision Investment Ltd initiated holding in Amazon.com Inc. The purchase prices were between $3189.78 and $3696.06, with an estimated average price of $3427.48. The stock is now traded at around $3158.710000. The impact to a portfolio due to this purchase was 17.52%. The holding were 3,100 shares as of 2021-12-31.

New Purchase: Qualtrics International Inc (XM)

Strategic Vision Investment Ltd initiated holding in Qualtrics International Inc. The purchase prices were between $31.27 and $47.24, with an estimated average price of $38.66. The stock is now traded at around $29.490000. The impact to a portfolio due to this purchase was 15.07%. The holding were 251,100 shares as of 2021-12-31.

New Purchase: I-MAB (IMAB)

Strategic Vision Investment Ltd initiated holding in I-MAB. The purchase prices were between $45.28 and $74.5, with an estimated average price of $59.71. The stock is now traded at around $22.970000. The impact to a portfolio due to this purchase was 4.96%. The holding were 61,800 shares as of 2021-12-31.

New Purchase: DiDi Global Inc (DIDI)

Strategic Vision Investment Ltd initiated holding in DiDi Global Inc. The purchase prices were between $4.94 and $9.81, with an estimated average price of $7.57. The stock is now traded at around $3.550000. The impact to a portfolio due to this purchase was 3.78%. The holding were 447,524 shares as of 2021-12-31.

Added: ACM Research Inc (ACMR)

Strategic Vision Investment Ltd added to a holding in ACM Research Inc by 30.25%. The purchase prices were between $70.35 and $117.7, with an estimated average price of $94.3. The stock is now traded at around $80.210000. The impact to a portfolio due to this purchase was 2.41%. The holding were 71,900 shares as of 2021-12-31.

Sold Out: Sea Ltd (SE)

Strategic Vision Investment Ltd sold out a holding in Sea Ltd. The sale prices were between $205.68 and $366.99, with an estimated average price of $296.89.

Sold Out: Kanzhun Ltd (BZ)

Strategic Vision Investment Ltd sold out a holding in Kanzhun Ltd. The sale prices were between $29.5 and $40.62, with an estimated average price of $35.03.

Sold Out: New Frontier Health Corp (NFH)

Strategic Vision Investment Ltd sold out a holding in New Frontier Health Corp. The sale prices were between $10.27 and $11.63, with an estimated average price of $11.27.



Here is the complete portfolio of Strategic Vision Investment Ltd. Also check out:

1. Strategic Vision Investment Ltd's Undervalued Stocks

2. Strategic Vision Investment Ltd's Top Growth Companies, and

3. Strategic Vision Investment Ltd's High Yield stocks

4. Stocks that Strategic Vision Investment Ltd keeps buyingThis article first appeared on GuruFocus.
https://finance.yahoo.com/news/strategic-vision-investment-ltd-buys-143833204.html

GO DIDI

"PEACE"

..Hence one of the reason for the movement today.

[DMOST]

Yes they have enacted a plan to start "Delisting". Hench the header in the article you referenced,

Didi is delisting from New York just months after its disastrous IPO
https://www.cnn.com/2021/12/02/investing/didi-ipo-delist-new-york-hong-kong-intl-hnk/index.html

But as of today, they have yet to have "Delisted" from the NYSE:

DiDi Global Inc. (DIDI)
NYSE - NYSE Delayed Price. Currency in USD
https://finance.yahoo.com/quote/DIDI?p=DIDI&.tsrc=fin-srch

The thoughts put forward, with my opinion, are / is they that are letting the price fall below a $1 and remain as such until it is automatically kicked-off the exchange by default......THAT IS THE PLAN?

GO FIGURE...

GO DIDI

"PEACE"

As the plan continues to progress....

[UpTickMeA$AP]

It's already being delisted..

https://www.cnn.com/2021/12/02/investing/didi-ipo-delist-new-york-hong-kong-intl-hnk/index.html


This ticker is already doomed to be wiped out from U.S. listing.

The End.

Nothing but a death spiral.

[DMOST]

....It this rate it will be there in 8-9 business days. Then the wait for boot off the exchange.

GO DIDI

"PEACE"

DAMN SHAME!

[DMOST]

So, it seems, the plan is to push it down below a dollar, sustain that for 60-90 days which automatically gets it kicked off the big stock exchange.......Hence, now a pink or OTC?

WOW!!!......And the SEC, how is this legal? pure manipulation.

GO DIDI

"PEACE"

ALL FUNKED UP

[DMOST]

China’s Uber, DiDi Has a Strong Future Ahead

In this article:

We finally have more clarity regarding when DiDi Global (NYSE:DIDI) will list in Hong Kong. According to a South China Morning Post report, shares could list as early as the second quarter of this year. The company is set to delist in the U.S. and offer a one-for-one exchange for their shares. It caps a horrendous few months for DIDI stock.

The Chinese ride-hailing company is in hot water after having its New York Stock Exchange initial public offering (IPO). Chinese regulators told DiDi not to move forward with the plan, but they continued anyway, and now it’s costing them greatly.

For investors, it is looking like a costly investment. They rushed in with the Didi IPO. And can you blame them? The Chinese market is huge, and its middle class is the biggest globally. In 2020, the Internet Society of China estimated that transactions reached around $39 billion.

However, the regulatory issues mean that only risk-tolerant investors will even remotely consider investing in DIDI stock. National security in China can be a vague and broad term. The laws purporting to cover all key industries are only limited by the imagination of those that enforce them. That will not change with a listing in Hong Kong.

But what about the investors who haven’t cashed out yet? For them, there are multiple options. Most will still give a nice return on their investment. However, any losses already incurred cannot be recouped. But you can still make some nice gains on the remaining options on the table.

What is more interesting is where the company is headed next. China won’t deal a fatal blow to this company; it’s just too valuable. Therefore, expect it to mount a comeback when it’s all said and done.

China’s Ride-Hailing Market and Regulation

The “Millennial lifestyle subsidy” is one of the best things in mobility right now. Ride-hailing services give discounted rates to people who use their service, which can save you money if you aren’t looking for anything too extravagant or long-term like car ownership.

Ride-hailing companies are now public corporations with massive investor bases and global reach. In theory, this means that they should withstand any setbacks faced by their competitors while still being profitable on an individual level — but there’s always something compelling enough about new ideas or fresh approaches that may prove too much for some established brands in the industry.

For investors, there are several things to consider; one of them is its position in China. China has been known as the world’s factory for many years due to its low labor costs and weak labor regulations. This reputation is mostly still intact today, with strong business ecosystems throughout Chinese cities like Shenzhen or Zhuhai.

That has helped increase consumer incomes, which has given rise to the middle-class consumer in China. The sharing economy is booming, and the new generation of mobility customers want to be part of this exciting trend. Ride-hailing services now focusing on tier three, four, or five cities because they are still below capacity compared with other parts of their country.

The regulatory turmoil has allowed competitors like Meituan (OTCMKTS:MPNGF) to infringe on the market share that was once solely occupied by Didi. But it still remains the number one company in the sector.

With its home market being the source of much confidence, Didi is counting on expanding into other countries. However, it faces an uphill battle as its dominance isn’t yet established, and many competitors await them. That will weigh down DIDI stock for the foreseeable future.

Earnings Highlight Recent Financial Woes

Didi is still the most prominent ride-hailing company in China. However, regulatory issues are still concerning for executives. The company’s financials are not looking good, with their latest quarterly report revealing a $4.7 billion loss after revenues shrank in the September quarter — a direct result of increasing costs due to regulatory actions.

The company’s sales have fallen more than 13% sequentially and 1% year on year. It adds to investors’ woes that are already reeling from the delisting announcement and what the future holds for Didi.

Operating expenses jumped by 16% during the last quarter to meet new compliance demands. In a move that should raise security concerns for all businesses operating in China, Didi’s delisting is unprecedented and highlights the depth of Beijing’s concern about sensitive data leaking out.

One of the most important things for a company’s long-term growth is unrestricted access to data from consumers. But this may not be possible in China, where Didi Global is facing restrictions on using customer information because it doesn’t meet national standards — and there are fears these rules could extend elsewhere too.

The company is a clear leader in China’s $50 billion domestic ride-hailing markets, but there are numerous hurdles it must overcome to maintain this position. If Didi can succeed with its plans for future growth and regulation, it will be well on track to achieve its ambitious goals by continuing its international expansion. For now, investors and the company have to roll with the punches.

DiDi Stock Makes Sense for the Risk-Tolerant Investor

For several months ahead, the future of DIDI stock will be vague. That means only investors confident in its recovery and outlook should pursue this one. The company has an excellent asset-light business model and is operating in a huge and growing market.

Even if you hold onto shares and convert to overseas exchange, the fundamentals and outlook are enticing. If the company goes private, you have a great chance to profit from the transaction. Finally, the company itself is a great prospect. Its issues deal with the regulatory environment in Beijing, not anything of the company’s own doing.

The DiDi carsharing service has expanded to 14 countries outside China, including Australia and New Zealand. Last year, the company continued its international expansion with the recent launch in South Africa for their fast-growing network that now includes many more countries across Latin America, Japan, and Mexico. And it has yet to step onto European shores, a huge potential market for DiDi.

There is an incentive to hold onto your DIDI stock for all these reasons.
https://finance.yahoo.com/news/china-uber-didi-strong-future-200247032.html

GO DID


"PEACE"

It's going to be a while.....

[DMOST]

DiDi’s Regulatory Troubles Provide an Excellent if Risky Entry Point

In this article:

DiDi’s (NYSE:DIDI) rapid growth has come to a screeching halt, as it is subject to intense regulatory scrutiny. It is now one of the worst-performing major listings of a Chinese company on a U.S. exchange. Since making its public debut on the New York Stock Exchange on June 30 at $14 a share, DIDI stock has plummeted 66%.

You can’t pin the stock’s poor performance on Didi’s management or operations. Rather, shares got whacked by a regulatory crackdown, as the Chinese government sought to tighten its oversight of data security and companies listed overseas.

Didi raised $4.4 billion in its initial public offering after selling 317 million American depositary shares at the IPO price, larger than any Chinese company since Alibaba Group (NYSE:BABA).

In early December, just five months after its U.S. IPO, DiDi announced it would file for delisting from the NYSE and pursue a listing in Hong Kong. That’s a tough pill to swallow, and many investors chose to cash out, sending DIDI stock down 22% on the day.

Recently, shares fell to another low after Didi’s 180-day lockup period expired. Management does not want the stock to fall any further. So, it’s restricting current and former employees from selling shares in the hopes of shoring up the share price.

Nevertheless, despite the negative external factors, it is hard not to be impressed by DiDi Global’s growth prospects. As China’s middle class continues to expand, so do opportunities for DiDi Global. So, the long-term tailwinds are positive. If you are an investor willing to take a bit of risk, there are several ways to play this stock for short-term and long-term gains.
Regulatory Issues Thump Didi Stock

Over the last year, Beijing has come down hard on Chinese tech stocks. President Xi Jinping’s administration touts data privacy as the reason to curb the once-freewheeling sector. However, several prominent names are feeling the brunt. For DiDi Global, it looked like the sky was the limit when it made its debut on the NYSE. However, now things are looking a bit fuzzier.

DiDi’s board has greenlighted the delisting from the NYSE and is pursuing an IPO in Hong Kong. According to the company, DIDI stock will be “convertible into freely tradable shares of the company on another internationally recognized stock exchange at the election of ADS holders.”

Bloomberg reported that the company is currently looking to register its IPO in Hong Kong around March, citing people privy to the matter. According to the report, we might see shares trading on the exchange by the summer.

There are three options investors are facing. The first is to sell their shares and wipe their hands of the investment. The second option is to wait for the conversion to the Hong Kong exchange. You have to confirm that your brokerage account provides access to international stock exchanges if that option suits your investment needs. The third option is to wait and see if the company decides to go private.

In July, The Wall Street Journal reported DiDi was considering taking the company private to appease the Chinese government. At the time, DiDi denied the report, but let’s consider the possibility for a moment. If the ride-hailing giant was taken private, it is highly likely to be at a premium over shares’ current levels.

Whichever way you slice it, shares are trading at an enticing discount for all these possibilities.
International Expansion

With the ever-growing middle class in China, major cities face taxicab shortages. Ride-hailing provides a solution to this problem and an income opportunity for thousands of drivers all over those areas. Didi Chuxing is the most popular ride-hailing service in China, with around 90% market share.

Looking ahead, DIDI is focusing on international expansion to become a truly global player in the ride-hailing industry. It previously planned for their operations in Europe and Britain but halted these plans after privacy concerns arose from local law regulations regarding data protection.

A major part of maintaining high revenue growth rates is expanding into new markets like Africa. The continent’s middle class is a major catalyst for economic growth in the region. And it will continue to fuel urbanization. With an increasing number of people living on upper-tier incomes level or higher, there are more opportunities than ever for companies like DiDi.

Overall, according to a report by Precedence Research, the ride-sharing market is expected to grow at a compound annual rate of 16.7% through 2030, reaching $344.4 billion.

That growth does not even include the autonomous driving market, which is the biggest potential moneyspinner for the company. Removing drivers from behind the steering wheels would allow a company like DiDi to eliminate one of its major expenses that eat into profit margins. The bottom-line impact will be astronomical.
DiDi Is Investing in the Future

DiDi is pouring massive capital into electric vehicles and autonomous driving technology. With its “robotaxi” unit that offers rides via mobile robots (think: driverless taxis), they’re one of few companies that have managed not only to provide these services but also create them. Didi Chuxing has announced that it plans to operate more than one million such vehicles by 2030.

It already has 100 autonomous vehicles on the roads. And it is hoping to deploy shared, electric ones in China’s cities soon. Didi has a dedicated subsidiary for its autonomous driving ventures. With funding of $800 million, this startup is now by SoftBank Vision Fund, among others.

Didi Chuxing is also active in financial services. The product suite includes car insurance products, personal loans, and crowdfunded medical coverage. In addition, the transportation segment includes food and grocery delivery. They have a community group buying platform called Tuán Gòu. It allows you to buy items in bulk from other members through your app at discount prices. The ride-hailing giant uses its vast trove of user data to deduce what people earn from where they spend most of their time.

Didi directly competes with more established players such as Alibaba’s Ant Financial and Tencent’s (OTCMKTS:TCEHY) WeSure platform. Meanwhile, the Chinese government is extending its pressure on fintech beyond Jack Ma’s Ant Group, with Tencent and ByteDance among the latest companies to be summoned by authorities.

However, you cannot fault DiDi for diversifying its revenue base.
The Bottom Line on DIDI Stock

There’s no denying DIDI stock is deep in the red as confusion abounds ahead of the company’s planned U.S. delisting. Nevertheless, there are bright spots that bulls can exploit for quick gains.

The company controls an estimated 90% share of the ride-sharing market in China and is still growing despite the pressure being applied by regulatory agencies. The Chinese ride-hailing giant is also active in several areas with tremendous growth potential.

Hence, there are more than enough positive tailwinds for an investor who’s willing to take on a bit of risk and has the ability to potentially access shares overseas. It is just about navigating choppy waters. On the flip side, DIDI stock also makes sense as a short-term investment, considering the near-term catalysts.
https://finance.yahoo.com/news/didi-regulatory-troubles-excellent-risky-131407241.html

GO DIDI

"PEACE"

[DMOST]

Didi in talks for a second-quarter IPO in Hong Kong on its way to delisting from New York, sources say

In this article:

Didi Global is in talks to launch its initial public offering (IPO) in Hong Kong in the second quarter, as China's dominant ride-hailing company prepares to exit the New York Stock Exchange (NYSE), according to two sources familiar with the matter.

Didi's bankers have had preliminary discussions with the Hong Kong Exchanges and Clearing Limited (HKEX) before submitting the A1 form to officially apply to list on the exchange, according to the sources, requesting anonymity for discussing a matter before its announcement.

Depending on market conditions, the Beijing-based company may list in Hong Kong in the second quarter, the sources said, adding that the financial terms of the proposed listing are still being worked on. HKEX's spokesman declined to comment on individual cases.

Didi forced its way last June to a US$4.4 billion IPO in New York that defied injunctions by Chinese regulators, who later described the controversial listing as a "deliberate act of deceit." The move set off a spate of retributions against Didi, forcing its smartphone application - the platform for drivers and passengers to interact - to be taken off app stores and setting off a series of cybersecurity investigations into the company's use of customers' data.

In December, Didi said it would delist from New York and explore listing in Hong Kong. The company's bankers are now busy finding a solution to ensure Didi meets all the listing requirements in Hong Kong, including the licensing of its drivers and other issues, the sources said.

Didi will be a test to see if Hong Kong can step up as the alternative listing avenue for more than 200 Chinese companies that are currently listed on US exchanges, where they have come under increasing legislative scrutiny for everything from accounting standards to alleged ties to the Chinese military and US sanctions on Xinjiang.

Hong Kong's government and the local burse have rolled out the red carpet to welcome US-listed Chinese companies to raise capital, offering a series of incentives and regulatory reforms starting on January 1.

"With mainland companies seeking to grow and still hoping to explore international financing in the face of increasing regulatory uncertainty in the US, it is likely that we will see more China concept stocks return from the overseas market," Hong Kong's Financial Secretary Paul Chan Mo-po said in a speech to the 15th Asian Financial Forum this week. "We are actively making preparations for that."

Didi's listing would also be a big boost to the HKEX, whose IPO tally shrank 17 per cent in 2021, its first decline since 2017. Hong Kong was the world's top IPO destination in seven of the previous 12 years.

Didi's capitalisation shrank to US$23.6 billion as of the close of trading on Tuesday in New York. Didi's NYSE listing was handled by a syndicate of banks comprising Goldman Sachs, Morgan Stanley, JPMorgan & Chase, Bank Of America, Barclays, China Renaissance, China International Capital Corporation (CICC), Citi, HSBC, UBS, and Guotai Junan.

The Cyberspace Administration of China in July launched its investigation into Didi's operations, which has yet to turn out an official conclusion. The investigators installed at Didi's Beijing headquarters had not been seen in the last two months, according to employees.

Didi reported a 30.4 billion yuan (US$4.77 billion) loss and a 1.7 per cent decline in revenue to 42.7 billion yuan in the third quarter of 2021.
https://finance.yahoo.com/news/didi-talks-second-quarter-ipo-093000904.html

GO DIDI

"PEACE"

[UpTickMeA$AP]

https://investorplace.com/2022/01/its-just-one-awful-update-after-another-for-didi-stock/

[DMOST]

More than 70 per cent of new Hong Kong listings ended 2021 below their IPO price, hit hard by Beijing's tech crackdown

Last year was a write off for investors hoping to profit from new listings, with over 70 per cent of the 96 initial public offerings in Hong Kong trading below their offering price by December 31, most suffering collateral damage from China's regulatory crackdown on the technology sector.

Eight of the 10 largest Hong Kong IPOs in 2021 would have delivered losses to their investors if they held the stocks until December 31, according to data from Refinitiv and Everbright Sun Hung Kai.

Short video-sharing platform operator Kuaishou Technology was the largest and most popular new listing in the city last year - and among the biggest losers. The stock finished 2021 at HK$72.05, down 37 per cent from its offer price of HK$115 in January, when the company raised US$6.2 billion.

However, short term investors who offloaded the stock on its debut were handsomely rewarded, as it closed the first day of trading at HK$300, more than double the offer price.

Shares of Kuaishou, which means "quick hand", climbed to a peak of HK$415 two weeks after its listing, but in July the stock plummeted to below its IPO price after Beijing started to tighten regulation of the tech sector.

A similar pattern could be found in most of the other top 10 new listings, which were dominated by tech stocks that were hit the hardest by the crackdown.

When comparing their year-end close and original offering price, JD Logistics fell 34 per cent while search engine Baidu plunged 43 per cent. They were 2021's second- and third-largest IPOs respectively, raising over a combined US$6.6 billion.

Bilibili, another video-sharing platform, lost 56 per cent, Linklogis plummeted 58 per cent, online travel platform Trip.com Group ended down 29 per cent, while Shenzhen-listed Asymchem Laboratories Tianjin fell 18 per cent from listing to year-end.

Online video platform operator Bilibili's logo at the China Digital Entertainment Expo and Conference on July 30, 2021. Photo: Reuters alt=Online video platform operator Bilibili's logo at the China Digital Entertainment Expo and Conference on July 30, 2021. Photo: Reuters>

Dongguan Rural Commercial Bank, the only financial firm among the top 10 IPOs last year, lost a relatively modest 4 per cent.

The only two winners in the group were two US-listed mainland Chinese electric vehicle makers that launched dual primary listings in Hong Kong. Xpeng closed the year at HK$186.3, up 13 per cent from its offering price in Hong Kong in June, while rival Li Auto gained 4 per cent from its listing price in August until the end of the year.

"The Hong Kong IPO market did not perform well in 2021. In total, over 70 per cent of the new listings [last year] recorded a decline in their share price as of the end of the year when compared with their IPO offering," said Kenny Ng Lai-yin, a securities strategist at Everbright Sun Hung Kai.
Amperex, ByteDance founders amass wealth in market's worst year since 2008

Ng said the poor performance of the mega-IPOs was a factor in the significant decline in Hong Kong's stock market last year.

"The mainland's tightening regulation of overseas listings also caused investors to worry about the IPOs of Chinese companies," he said

Ng, however, believes IPOs in Hong Kong will perform better in 2022. "Due to the tension in the Sino-US relationship, the trend of Chinese companies listing in Hong Kong is expected to continue," he said.

A robotic arm hits the gong during a ceremony marking the debut of JD Logistics on the Hong Kong stock exchange. Photo: Bloomberg alt=A robotic arm hits the gong during a ceremony marking the debut of JD Logistics on the Hong Kong stock exchange. Photo: Bloomberg>

Hong Kong's main board slid to third from second in the international IPO rankings last year, as fundraising sank 17 per cent to US$42.6 billion. That was below Nasdaq and the New York Stock Exchange, but higher than the Shanghai Stock Exchange and the Shanghai Star Market.

The worst performer last year was genetic technology research company Suzhou Basecare Medical, which added 1.2 per cent to its debut price of HK$27.36 in February, but had lost 75 per cent of its value by year-end, closing at HK$6.7 on December 31.
15 IPOs to keep an eye on, as Hong Kong tries to put difficult year behind it

The biggest winner was Morimatus International, a mainland pressure equipment maker, which soared 259 per cent on its debut on June 28. Its shares have continued to gain since, ending 2021 at HK$8.95 for a total return of 261 per cent on its IPO price.

In November, the Securities and Futures Commission (SFC) issued a warning about the high concentration of shareholdings in the company, with 17 shareholders owning 21.14 per cent of total issued shares, and the controlling shareholder owning 72.29 per cent.

The SFC said because only 6.57 per cent of Morimatus shares were in the hands of other shareholders, the stock could experience price fluctuations.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2022 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2022. South China Morning Post Publishers Ltd. All rights reserved.
https://finance.yahoo.com/news/more-70-per-cent-hong-093000981.html

GO DIDI

"PEACE"

[UpTickMeA$AP]

First quarterly report in over 6 months, total failure. Getting delisted at some point doesn't help. This is a train wreck waiting for the grave.

[DMOST]

Didi revenue falls as China's regulatory crackdown hits business

Wed, December 29, 2021, 3:47 PM

(Reuters) -China's ride-hailing firm Didi Global on Wednesday reported a 1.7% decline in third-quarter revenue, as its domestic business took a hit from a regulatory crackdown.

Daniel Zhang, the chief executive officer of Chinese e-commerce giant Alibaba Group Holding, who had served as a director on Didi's board since 2018 has resigned, the company said.

Chinese authorities have come down hard on Didi, after its New York Stock Exchange listing in June, demanding it take down its app from mobile app stores while the Cyberspace Administration of China (CAC) investigated its handling of customer data.

The restriction hit Didi, co-founded in 2012 by former Alibaba employee Will Wei Cheng and backed by SoftBank Group, which was the dominant ride-hailing company in China.

The company now faces stiff competition from ride-hailing services by automakers Geely and SAIC Motor.

Under pressure from Chinese regulators concerned about data security, Didi in December succumbed and decided to delist from the NYSE and pursue a Hong Kong listing.

Shares of Didi, which had soared in their IPO giving the company a valuation of $80 billion and marking the biggest U.S. listing by a Chinese firm since 2014, have since declined 65%.

Didi said on Wednesday its board had authorized it to pursue a listing of its class A ordinary shares on the main board of the Hong Kong Stock Exchange.

"The company is executing above plans and will update investors in due course," Didi said.

Revenue for the third quarter ended Sept. 30 fell to 42.7 billion yuan ($6.71 billion) from 43.4 billion yuan a year earlier.

Didi, which is expanding its presence in Europe and South America, said revenue from its international operations nearly doubled to 966 million yuan in the quarter.

Net loss attributable to ordinary shareholders was 25.91 yuan.

($1 = 6.3680 Chinese yuan renminbi)
https://finance.yahoo.com/news/didi-global-quarterly-revenue-falls-214742270.html

GO DIDI

"PEACE"

[bigfred1]

Didi reported today unaudited results.
What do you think?

[DMOST]

China's Didi plans Hong Kong 'listing by introduction', picks banks - sources

In this article:

HONG KONG (Reuters) - China's ride-hailing giant Didi Global plans to use a mechanism that will allow it to list shares in Hong Kong without raising capital or issuing new stock as it seeks to delist from New York, two people with knowledge of the matter said.

The plans come as Didi is moving towards withdrawing from the New York Stock Exchange under pressure from Beijing after running foul of Chinese authorities by pushing ahead with an initial public offering (IPO) there earlier this year despite being asked to put it on hold while a review of its data practices was conducted.

The Hong Kong mechanism, known as 'listing by introduction', would allow owners of Didi U.S. shares to transfer them to the city's bourse gradually, said the people. They declined to be identified as the plan was not yet public.

Didi aims to file for the Hong Kong listing by end-April and list by June, one of the people said.

The plans are being prepared six months after Didi, sometimes dubbed the Uber Technologies Inc of China, made its debut in New York after raising $4.4 billion in a conventional IPO.

It said earlier this month that it plans to delist from the U.S. bourse and pursue a Hong Kong listing.

A spokesperson for Didi, whose apps, in addition to ride-hailing, offer products such as delivery and financial services, did not immediately respond to Reuters request for comment.

Unlike typical IPOs, companies listing stock by introduction in Hong Kong raise no capital and issue no new shares. The mechanism was popular among companies in the past looking to build a brand in Hong Kong and the rest of Greater China.

Didi has picked Goldman Sachs, China Merchants Bank International (CMBI), and China Construction Bank International (CCBI) to manage the Hong Kong listing process, said the people.

Goldman declined to comment, while CMBI, and CCBI did not immediately respond to request for comment.

Reuters reported this month Didi planned to hire Goldman to work on the Hong Kong listing before embarking on the New York delisting. It had asked the bank to come up with proposals on how a Hong Kong listing and New York delisting would work.
https://finance.yahoo.com/news/chinas-didi-plans-hong-kong-054738953.html

GO DIDI

"PEACE"

[DMOST]

Didi Shares Slump After Insiders Blocked From Selling Stock

Mon, December 27, 2021, 7:21 AM

In this article:

(Bloomberg) -- Didi Global Inc. slumped on Monday after the Financial Times reported that current and former employees of the firm have been banned from selling any of their stock indefinitely.

Shares of the Chinese ride-hailing giant fell as much as 3.9% in premarket trading and are down 1.1% as of 8:20 a.m in New York. The move to block employees from unloading their shares comes just as early investors are set to be able to sell stock on Monday at the end of Didi’s 180-day lock-up following its June initial public offering.

While Didi’s outside investors -- which include Uber Technologies Inc., SoftBank Group Corp. and Tencent Holdings Ltd. -- will still be able to offload shares on Monday, according to the FT, they likely face steep losses after months of selling pressure.

A flurry of regulatory crackdowns by authorities in both Beijing and Washington have dogged the stock since its trading debut. Didi shares have lost 60% of their value in just short of six months of trading, erasing about $41 billion in market capitalization over that span. Earlier this month Didi said it had begun preparations to delist from U.S. exchanges and pursue a listing in Hong Kong.
https://finance.yahoo.com/news/didi-shares-slump-insiders-blocked-132103525.html

GO DIDI

"PEACE"

This should be looked upon as positive....But yet a slump?....GO FIGURE.

[DMOST]

China's new VIE rule eases concerns about overseas IPOs following months of uncertainty after Didi probe

Sat, December 25, 2021, 3:30 AM

In this article:

China's securities watchdog has given tacit approval to a corporate structure that lets technology companies raise funds offshore, closing a two-decades-long regulatory loophole that has become a lightning rod in rising US-China tensions in capital markets.

Chinese companies set up as variable interest entities (VIEs) are allowed to list in offshore markets if they register with regulators and meet compliance rules, according to a draft of a new regulation released on Christmas Eve by the China Securities Regulatory Commission (CSRC). The draft was published online to solicit public opinion through January 23.

The regulator said it would only assess the truthfulness, accuracy and completeness of submitted documents before giving applicants a green light for offshore listings, indicating that the registration-based system is not a stricter approval process.

Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
Chinese regulator in talks over VIEs with Hong Kong watchdog, financial firms

"The draft rule ends months of speculation about China's stance on VIEs, and it turns out to be friendly to those cash-starved tech companies and foreign funds," said Cao Hua, a partner at private-equity firm Unity Asset Management. "At least companies that previously looked to list shares abroad via the VIE structure can stick to their fundraising plans and focus on business growth."

A VIE structure allows founders and investment funds to set up offshore vehicles that can sign contracts with Chinese firms, giving the latter effective control of the entity.

The draft rule contradicts a December 1 report from Bloomberg that said China planned to ban initial public offerings on foreign exchanges through VIEs to address concerns about data security. It added that fundraising through VIEs would still be allowed in Hong Kong.

VIEs have been used for decades in capital markets, coming to prominence after the collapse of Enron. They are often used by Chinese companies that list on overseas stock markets, primarily the United States, to get around China's ban on offshore investments in industries deemed to be strategically sensitive, such as the internet, fintech and telecommunications.

As of mid-September, a total of 545 mainland companies, most of which are tech start-ups, raised funds offshore through the system, according to a research report by Guotai Junan Securities.

A trader works during the IPO for Chinese ride-hailing company Didi Global Inc on the New York Stock Exchange floor on June 30. Photo: Reuters alt=A trader works during the IPO for Chinese ride-hailing company Didi Global Inc on the New York Stock Exchange floor on June 30.

"Now CSRC may effectively level the playing field between the US and Hong Kong with respect to this issue by itself not permitting companies that are not fully compliant with regulations in China to list overseas, full stop," said Marcia Ellis, a partner at Morrison & Foerster and global chair of the firm's private equity group in Hong Kong. "Some companies that are not fully compliant with all regulations in China may no longer be able to list anywhere."

The CSRC said that the rule is not retroactive, so companies already listed as VIEs overseas are exempt from the stricter rules.

Beijing revamped its rules for overseas listings after ride-hailing behemoth Didi Global launched its US$4.4 billion IPO in New York in late June despite warnings from regulators. That triggered a data security investigation led by the powerful Cyberspace Administration of China (CAC), which recently culminated with the firm announcing plans to delist in the US in favour of Hong Kong.

Under new rules drafted by the CAC in July, Chinese companies handling the data of more than 1 million users must seek approval before listing overseas. Such reviews were later clarified to also apply to Hong Kong listings.

The new rules "don't demand companies that seek offshore listing get regulatory approval, instead they need only file relevant documents with the CSRC for records. So it is essentially paving the way for overseas listings," said Luo Zhiyu, a partner at DeHeng Law Offices who specialises in cross-border IPOs, mergers and acquisitions.

"But for the companies that need data security reviews or other pre-approval reviews before they can file the relevant documents, the details of such review are vague and there aren't many precedents as it is a rather new type of regulation. This can add to uncertainty for filing with CSRC," Luo said.

Didi's case sparked concern about the fate of the VIE structure, which was first used by a Chinese enterprise in 2000, when Weibo owner Sina Corp listed on the Nasdaq. CSRC officials held discussions with the Securities and Futures Commission in Hong Kong, as well as investment bankers, accountants and lawyers over the past few months on the VIE structure, the South China Morning Post reported earlier this month.

Under the new rule, Beijing will strengthen oversight of companies' operations, including the handling of data, before allowing them to list overseas.

"The filing system essentially creates a new policy tool to manage the overseas listings in terms of both quantity and quality, and the practical impact will largely depend on how CSRC will administer and adjust the implementation," said Chen Weiheng, partner and head of China practice at US law firm Wilson Sonsini.

The lawyer added that the new rule also sheds light on a mechanism allowing for cross-border cooperation between the CSRC and overseas counterparts such as the US Securities and Exchange Commission.

Under this mechanism, the CSRC may inform an overseas regulatory counterpart of a company's violations of China's overseas listing rules. The overseas regulator may also request the CSRC's assistance in regulatory investigations in connection with a Chinese company's overseas share offering.

International underwriters of a Chinese firm's offshore listing will also be required to register with the CSRC, according to the new regulation.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.
https://finance.yahoo.com/news/chinas-vie-rule-eases-concerns-093000575.html

GO DIDI

"PEACE"

[DMOST]

.....yes but the end of year is near. Will see what happens.

GO DIDI

"PEACE"

[bigfred1]

The slide in DIDI shares could be stemmed if they were allowed to reuse their apps. Didi had previously announced about a month ago that the "worst is over and that the apps will be restored before the end of the year".

[DMOST]

Didi’s Early Investors Get Window to Exit After IPO Disaster

In this article:

(Bloomberg) -- The end of a lock-up period after a new listing is often a triumphant time when pre-IPO investors can cash out and book profits. For Didi Global Inc., whose shares have lost more than half of their value since going public, it’s a different story.

Regulatory crackdowns on both sides of the globe, culminating with the announcement of Didi’s plans to de-list in New York, have weighed on the Chinese-ride hailing giant. It’s lost $40 billion in market value since the June IPO -- a stunning blow for what was expected to be one of the largest and most successful deals in 2021.

Certain company directors and executives that hold shares as well as firms that invested in Didi ahead of the listing have been spectators to the stock’s collapse, restricted from selling for a customary 180-day period after its public sale. Come Monday when that lock-up ends, they have a decision to make: sell now -- potentially for a loss -- or wait months for more clarity on Didi’s plans to list in Hong Kong.

“Once Didi lists in Hong Kong, the dark cloud of uncertainty will largely dissipate, which would be positive for the shares,” Jason Hsu, founder and chief investment officer of Rayliant Global Advisors said.

Didi shares closed down 0.5% in New York on Thursday to a record low of $5.60.

Uber Technologies Inc., which owned 11.9% of the company right after the IPO in June, isn’t planning to sell immediately upon the expiration of the lock-up, according to a company spokesperson. Chances are other early investors also stay on the sidelines, according to analysts.

“Optically, it would be quite a bad look if insiders started reducing holdings materially with the plan for a delisting in the US and offering in HK in the new year so I wouldn’t expect too many to be selling just yet,” according to Matthew Kanterman, an analyst at Bloomberg Intelligence. “Insiders selling a significant number of shares given all of these uncertainties and risks would be a very bad message to the market.”

The lockup applies to company directors, executive officers and holders that own at least 90% of total share capital. SoftBank Group Corp. and Tencent Holdings Ltd. were listed as holders as of June, while Didi’s directors and executives collectively held about a 10% stake in the company, according to the IPO prospectus.

Didi, SoftBank and Tencent didn’t immediately respond to requests for comment.

Homecoming

Didi this month began preparations to withdraw from U.S. stock exchanges following demands from Chinese regulators that had opposed its American listing over concerns about the security of sensitive data. It will pursue a listing in Hong Kong and ensure that the U.S. stock will be convertible into freely tradable shares on another internationally recognized stock exchange.

Meanwhile, the Securities and Exchange Commission is crafting a new law that mandates foreign companies open their books to U.S. scrutiny or risk being kicked off New York Stock Exchange and Nasdaq within three years.

Didi’s migration to Hong Kong may provide investors with an alternative, albeit a protracted one. Bloomberg News reported earlier this month the company had begun setting the groundwork to withdraw from U.S. and was aiming to file the paperwork to start trading in Hong Kong around March. Based on the typical process there, it could target a summer listing.
https://finance.yahoo.com/news/didi-early-investors-window-exit-153545612.html

GO DIDI

"PEACE"

[DMOST]

DiDi Global Stock Won’t See $14 Again, But Speculators Could Still Profit

In this article:

It all started with so much promise. DiDi Global (NYSE:DIDI) stock started at $14 per share after the company launched its initial public offering (IPO) in June. It was supposed to be the so-called Uber (NYSE:UBER) of China.

DiDi, like Uber, is primarily a ride-sharing platform. DiDi has carved out a niche for itself since Uber and other western competitors failed to catch on in China.

That’s not all, however. DiDi also offers food delivery, freight services, electric vehicle (EV) leasing services and so on.

The company hasn’t reached profitability yet, but it has shown rapid revenue growth. Up until it ran into trouble with Chinese regulators, it looked like DiDi had a good shot at being a long-term winner. Since then, it’s all gone awry. The latest turn might just be the worst yet; DIDI stock is being forced off the New York Stock Exchange.

Leaving New York: What Comes Next?

Earlier this month, DiDi announced that it will start the procedure to delist its stock from the New York Stock Exchange. DiDi stated that this will start “immediately,” though there wasn’t too much in the way of hard details on the exact timing of things.

DiDi did say that existing DIDI stock shares will remain freely tradable and move to another international stock market exchange. It appears that DiDi will relist in Hong Kong after leaving New York.

Existing shareholders should be able to transfer their holding to the Hong Kong stock market or wherever the shares ultimately end up. That said, some brokers, such as Robinhood (NASDAQ:HOOD) have limited support for stocks that aren’t listed on a major U.S. exchange.

A sizable number of retail investors may not be able to maintain their share ownership in DiDi if and when the stock is relisted in Hong Kong.

In theory, if the stock is delisted, it would likely lose some value in the short run. A significant portion of the shareholder base would probably choose to sell DIDI stock in New York while they still could. It will take some time for a new loyal investor group to develop in support of the stock with its Hong Kong listing.

What If It Is Privatized?

I’ve seen bullish arguments suggesting that DIDI stock would be worth $14 in a potential privatization scenario. I disagree with this view.

The $14 mark comes from the company’s IPO, which went off at $14 per share. In a fair and just world, since DiDi can’t remain on U.S. markets, it would refund the original $14 per share back to make good on the IPO.

However, this seems unlikely. For one, a huge portion of the stock has already traded hands and people have made or lost money accordingly; there’s no way to “undo” the IPO even if people wanted to.

For another, the value of DiDi has arguably dropped significantly since the IPO. China’s regulators cracked down on DiDi in particular, removing its app from stores. This was certainly a negative development compared to what people knew at the time of the $14 IPO.

Also, Chinese tech stocks such as Alibaba (NYSE:BABA) have been in freefall. It would be hard to argue that Didi is still worth the same price today as then when other listed Chinese tech companies have dropped substantially.

Finally, I doubt insiders would be so generous. DIDI stock is trading below $7 per share now. Most shareholders would probably be happy to get something like $9 or $10 given the current state of DiDi in particular and tech stocks in general.

A take-private scenario is reasonably likely and would have upside for shareholders, but don’t anchor on the IPO price. At this point, any potential deal probably happens at a significantly lower price.

DIDI Stock Verdict

Any potential trade in DIDI stock is a pure speculation, let’s be clear about that. The ultimate fate of the company’s stock — or at least its listed shares in New York — is in the hands of corporate insiders and regulators.

They have multiple avenues to choose from, and outside forces may compel them toward a certain outcome.

As traders, any play here is simply an educated roll of the dice on how insiders and regulators will handle this mess. If they choose to privatize the company quickly, shareholders should receive a decent premium. I’d guess something like 25% or 30%, don’t count on getting the $14/share IPO price back, but it’d likely be a reasonable profit.

If the company decamps from North America and turns to a Hong Kong listing, that could go either way. Shareholders would still have an economic interest in the future of DiDi’s business.

However, with less liquidity — in particular, not being able to trade the stock on many U.S. brokerages — shareholders might not want to stay with Didi while going down this path.

There’s also the risk that DIDI stock is left to languish. Not yet delisted, but still hanging under the cloud of future regulatory action. In the short term, DiDi’s shares may continue to sink until there is clearer resolution on the company’s fate. That being the case, there are better bets to play a recovery in the Chinese tech sector.
https://finance.yahoo.com/news/didi-global-stock-won-t-110025979.html

GO DIDI

"PEACE"

[DMOST]

China's Didi plans to hire Goldman for Hong Kong listing, U.S. delisting -sources

In this article:

HONG KONG (Reuters) - China's Didi Global plans to hire Goldman Sachs for its planned Hong Kong listing and U.S. delisting, said three sources with knowledge of the matter, as it moves to withdraw from the New York exchange after just five months.

Didi, which made its debut in New York on June 30 after raising $4.4 billion via an initial public offering (IPO), said last week that it plans to delist from the U.S. bourse and pursue a Hong Kong listing.

The company is under pressure from Beijing to quit the New York Stock Exchange after running foul of Chinese authorities by pushing ahead with its IPO despite being asked to put it on hold while a review of its data practices was conducted.

Two sources said Didi was looking to appoint Goldman to work on the Hong Kong listing before embarking on the New York delisting. A separate source said Didi was also in talks with other investment banks including some Chinese banks.

Given the short time since its New York debut, Didi will have to apply for a dual-primary listing in Hong Kong, instead of a secondary one which requires at least two financial years of good regulatory compliance on another qualifying exchange.

The company, sometimes dubbed the Uber of China, has also asked the Wall Street investment bank to come up with proposals on how a Hong Kong listing and New York delisting would work, said two of the sources.

Didi did not respond to a Reuters request for comment. Goldman declined to comment. The sources were not authorised to talk to the media and therefore declined to be identified.

Goldman was one of the main underwriters of Didi's New York IPO, along with Morgan Stanley and JPMorgan.

Reuters reported last week, citing a source with knowledge of the matter, that Didi aims to complete the Hong Kong listing as soon as in the next three months, and delist from New York by June 2022.

Didi's shares closed at $6.66 on Thursday, more than 50% below their launch price.
https://finance.yahoo.com/news/chinas-didi-plans-hire-goldman-130055589.html

GO DIDI

"PEACE"

[sweet crude]

China Evergande defaults for first time

Ratings agency Fitch confirmed that Evergrande defaults on over a billion dollars of bond repayments as it downgraded the firm's status to a restricted default rating.

[DMOST]

Some hedge funds may have lost millions on bets on China's Didi Global

TORONTO (Reuters) - Several hedge funds may have been bruised by bets on Didi Global Inc, filings showed after the shares tumbled since the Chinese ride-hailing company announced plans to withdraw from the New York Stock Exchange.

Didi’s shares have tumbled 56.8% from their June 30 IPO price. The slide accelerated after the company said on Friday it planned to delist from the New York Stock Exchange and pursue a listing in Hong Kong, bending to Chinese regulators angered by its U.S. debut.

Hedge funds were invested in 94.4 million shares of Didi at the end of September, down 13.2 million shares from the previous quarter, according to U.S. 13F filings compiled by industry tracker Symmetric.

It is not known if hedge funds had further reduced their investment since that time, but Reuters calculations show the 7.9% fall in Didi’s shares between the end of September and Dec. 7 would have wiped a combined $60.9 million of value from those positions.

As of the end of September, 27% of the value of the company was held by institutional investors owned by managers classified as hedge funds by Symmetric.

Symmetric notes that stocks with a high percentage of ownership by hedge funds may be susceptible to liquidations by those funds during stressed periods.

Among hedge funds that bought shares in the third quarter, Bridgewater Associates purchased almost 9 million, according to filings.

Penserra Capital bought 5.4 million in Didi's stock while Owl Creek Asset Management purchased 1.7 million and Seven Eight Capital 537,145 shares, the filings showed. They showed that Paulson & Co added 1.6 million shares at the end of the third quarter while Seven Eight Capital purchased 537,145 shares.

Bridgewater, Penserra, Owl Creek, Paulson and Seven Eight did not respond to requests for comment.

Tiger Global Management and billionaire George Soros’ fund also held sizeable stakes in Didi at the end of the third quarter, together accounting for 4.7 million shares at end-September.

Singapore’s state fund Temasek reduced its position in Didi by 3.6 million shares as of Sept. 30, but maintained a stake of 29.4 million shares.

Tiger and Soros did not respond to requests for comment while Temasek declined to comment on the position.

It is not known if these firms are still invested but an executive at a large U.S. based hedge fund, which had a small position in Didi that it exited recently, said a lot of people are pulling out even if they plan to possibly get back in later.

"There is also a problem that retail investors and even some mutual funds may not be able to easily own Hong Kong listed shares and will be forced to sell, so there would be more pressure," said the executive.

Among the public pension plans that held shares of Didi were Canada Pension Plan (CPP), Montreal-based Caisse de dépôt et placement du Québec and the California Public Employees' Retirement System (CalPERS).

A spokeswoman for Caisse declined to comment while CPP and CalPERS could not be immediately reached for comment.
https://finance.yahoo.com/news/hedge-funds-may-lost-millions-060810316.html

GO DIDI

"PEACE"

[DMOST]

YELP!

GO DIDI

"PEACE"

[Noonehasthisusername]

This board pretty quiet on DIDI...

I am surprised how many people are short DIDI at these levels.

I think it will close above $7.00.

China is gearing up for the Winter Olympics and I expect the DIDI app will be reinstated soon. IMO.

GLTA