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Didi proceeds with NYSE delisting

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Yahoo Finance Live anchors discuss China stocks as Didi proceeds to delist from the New York Stock Exchange.

Video transcript

AKIKO FUJITA: Well, Chinese ride-hailing giant DiDi will officially delist from the New York Stock Exchange. Shareholders approved the decision at the extraordinary general meeting held in Beijing today. The company says it plans to formally file with the SEC next month with shares expected to be delisted on June 12.

The move comes less than a year after DiDi went public in the US, and it has been plagued by regulatory scrutiny back home since. The company has no plans to relist on another exchange for now. And Brian, this is against this broader backdrop that we've seen, a bit of a cool down coming from Chinese companies looking to list in the US.

Obviously, DiDi you could say is a bit of its own case because of the regulators back home who immediately after they listed really cracked down, number one, on concerns about data sharing, many other issues too. But right now, DiDi is kind of in this holding pattern. They're going to delist, but they can't necessarily go in list in Hong Kong yet because regulators back home haven't given the green light.

BRIAN CHEUNG: Yeah. And I think, I mean, you don't want to read too much, but we're showing that stock board just now of all those Chinese companies that are also in the red today despite the fact that it's a green day broadly. And you do wonder whether or not the DiDi news here-- it's really not news because we know that this was coming, but just kind of the reaction today kind of showing just how exposed all these other Chinese companies are.

And for decent reason when you consider that the Securities and Exchange Commission has taken on a more aggressive stance as of the end of the Trump administration into the Biden administration as well into making sure that Chinese companies listing in the United States are properly following the compliance and have the proper auditing standards that are up to snuff with other American companies. Something kind of weird with a lot of the shell companies and ADR structures that these Chinese companies have. So again, something very much a hot topic right now.

AKIKO FUJITA: Well, the SEC has identified more than 200 companies so far that they're saying is not in compliance with US accounting standards. The question is, how many of those will come into compliance? They've got three-year window. But just latest numbers here from Renaissance by the way, 11 new filings of Chinese companies in the US looking to raise $50 million. So companies are still coming to market. But that is a dramatic pullback.

BRIAN CHEUNG: We'll see if they stick with the plan on that front.

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