Didi shares surge despite plan to delist from the U.S.
Summary
Didi shares soared as much as 14% in U.S. premarket trading Friday after the company announced plans to delist from the New York Stock Exchange and pursue a listing in Hong Kong instead. Neil Campling, global TMT analyst at Mirabaud Equity Research, said Didi shares were likely surging due to technical reasons. The clampdown began with Alibaba founder Jack Ma and his fintech company Ant Group, whose IPO was suspended late last year following critical comments from the Chinese tech billionaire on regulators. According to a Bloomberg report last week, Chinese regulators asked the firms executives to come up with a plan to delist from the U.S. Didi declined to comment at the time. On Thursday, the U.S. Securities and Exchange Commission finalized rules allowing it to delist foreign stocks for failing to meet audit requirements.