“After a careful study, the company will start delisting on the New York Stock Exchange immediately, and start preparations for listing in Hong Kong,” the Chinese ride-hailing firm wrote Friday on its verified account on Weibo, a popular Twitter-like platform in the country.
In a separate, English-language statement, the company said that its board of directors has authorized the company to file for delisting in New York, while ensuring that its shares “will be convertible into freely tradable shares of the company on another internationally recognized stock exchange.”
The board has granted permission for Didi to list its shares in Hong Kong, the statement added.
The company’s stock is now worth about half of its $14 IPO price, a loss of nearly $30 billion in market capitalization.
There have also been recent signs that Didi would leave New York. Last week, Bloomberg reported, citing anonymous sources, that the Cyberspace Administration of China asked Didi’s top executives to work out a plan to do just that.
The pressure on Chinese firms that trade in the United States isn’t just from Beijing. Washington has also tightened the screws on companies from the world’s second largest economy. On Thursday, the US Securities and Exchange Commission finalized rules that would allow it to delist foreign firms that refuse to open their books to US regulators. China has for years rejected US audits of its firms, citing national security concerns.
Chinese tech firms were shaken by Friday’s news from Didi. E-commerce firm JD.com plunged more than 7%, while Alibaba lost 5%. Baidu was down 3.6%. Gaming and online music company NetEase, which also trades in New York, slid 8%.
CNN’s Beijing bureau contributed to this report.