On the other hand, a Hong Kong float would likely be discounted to what Didi shares trade in the United States. After the report was released, the company’s shares plunged nearly 7%, while those of SoftBank, Didi’s largest minority shareholder, fell 5%.
If this action is carried out, it would show the Chinese government’s drive to dominate its country’s tech giants and subject them to stricter regulation. However, deliberation continues and regulators are likely to back down on their request, anonymous sources told the US media.
It should be remembered that Didi has been in the midst of controversies with the government of his country after he decided to go public in New York, as this action represented a challenge to the authority of Beijing. Subsequently, Chinese regulators launched multiple investigations into the company and considered a series of sanctions.