DiDi Global (NYSE: DIDI), the Chinese ride-hail giant, said it plans to delist its shares in the US before applying to be listed on an alternative exchange.
Why it’s important: This has become one of the stock market’s most colossal busts, with more than $ 57 billion of market value destroyed in just nine months. And it could have been avoided if the DiDi executives had not miscalculated the decision by Chinese regulators.
Details: DiDi said it would hold an extraordinary general meeting on May 23 to vote on the NYSE’s delisting, adding that its fourth-quarter net loss grew by 95% year-over-year and its revenue fell by 13%.
Bottom line: This throws an additional hurdle on Chinese stocks in the U.S., which recently got some hopeful glimpses as Beijing agreed to loosen rules that effectively prevented Chinese companies from sharing audited finances with U.S. securities regulators.