Every enterprise has a motherland. Didi, too
Domestic ride-hailing app Didi Chuxing announced on its official website on Monday that it has decided to delist from the New York Stock Exchange, a decision taken at a temporary shareholders' meeting.
The enterprise will officially apply to delist on June 2 and the decision will come into effect 10 days later.
Didi Chuxing had a gala debut on the NYSE last June, just 20 days after China's first Data Security Law came into effect. With over 400 million domestic users, Didi has access to the personal data of almost a third of China's population as well as the geographical conditions of the country. On social networking sites, people expressed fears for the safety of such data but got no answers.
On July 2, the Cyberspace Administration of China launched an investigation and found that the enterprise was illegally collecting personal data of customers. Later a joint team arrived at the Didi Chuxing office to help it rectify this mistake.
Some argue that Didi Chuxing should be allowed to list wherever it wants. True, but the data it collects, unless well protected and regulated, can be a threat to national security.
On Monday, Didi Chuxing's stock price on the NYSE dipped to $1.525, almost 90 percent lower than what it was last June. The market has expressed its attitude to an enterprise's responsibility of protecting the data related with national security.
According to the rules, before it finishes delisting, Didi Chuxing cannot apply to list on any other stock exchange. However, while announcing its intention to delist from the NYSE in December 2021, the enterprise had expressed its wish to list on the Hong Kong Stock Exchange.
That shows the company sees the potential of the Hong Kong Special Administrative Region, the Guangdong-Hong Kong-Macao Greater Bay Area, and China as a whole. There are plenty of commercial opportunities in China and any law-abiding enterprise will see its business prospering here.
Businesses know no borders, but every enterprise has its own motherland.
To which Didi Chuxing is no exception.
Follow the writer on Twitter: @zzxang86
