On June 30, Chinese ride-hailing giant Didi Global had a disastrous IPO on the New York Stock Exchange (NYSE). Though it raised US$4.4 billion ($5.95 billion) in the IPO, its shares barely budged despite attempts by American investment bankers to prop them up. Less than 48 hours after its shares began trading, Didi was fighting for its life. Beijing has ordered a full-scale cybersecurity investigation into Didi and several other Chinese tech firms that had recently listed in New York. On July 4, Chinese regulators banned Didi’s app from all app stores as well as from super apps like WeChat to prevent the ride-hailing firm from accessing new customers.  

Apparently, Beijing had advised Didi against the IPO, but the ride-hailing firm went ahead with the listing anyway. China has since announced new rules for firms listing overseas which could lead to the delisting of all 248 listed Chinese firms in the US. 

Didi’s brazen defiance of Beijing came just eight months after regulators forced Alibaba Group Holding to pull the US$330 billion IPO of its FinTech affiliate Ant Group, the largest listing in history, merely 36 hours before its shares were to start trading in Hong Kong and Shanghai.

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