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Didi has begun casual talks with the Hong Kong stock exchange on a public list, according to two people familiar with the situation, as the Chinese leader tries to make a comeback. Dangerous IPO in New York.
Chinese authorities disrupted Didi’s business a few days after it first launched in the US last June, ordering its software to be removed from mobile app stores and launch a search for its performance. Didi Categories, which started selling at $ 14, now has $ 4.90, losing more than $ 40bn at market price.
The list in Hong Kong is now more complex for the group, after which it will begin the process of deporting people to the US, allowing US owners to share a share of its HK shares, according to Didi’s chief Investor.
“This is an idea from China [government], then if they can’t get this out then they are in a box of punishment forever, “said Investor.
But Hong Kong’s list may not be straightforward and could take a long time to prepare, industry experts and analysts say.
The two biggest problems are the ones that have not been solved government research in Didi and its continued difficulty in obtaining proper licenses for its businesses and drivers in several cities across China.
Although it was put in the limbo Didi has it see lost balloon to $ 7.6bn in the first nine months of last year. It is about to wreak havoc on its financial system and short-term businesses by mid-2023 using the current system.
An inter-government investigation into Didi, which found seven agencies, including the Ministry of State Security, who are fearful, sending officials to its headquarters, has not been completed.
In the initial turmoil, investigators suspended Didi’s entire business venture for 45 days and barred the company from disclosing information publicly.
Six months later, the investigators left Didi’s office and wrote their reports, according to two people who are familiar with the matter, and the company’s experts are awaiting a verdict of panic.
A person close to Didi’s main body claimed that the investigation did not find enough evidence that Didi transferred or disclosed his information, including requests for travel to and from government offices in Beijing, to the US.
But the man predicted that Beijing would “still find something Didi had done wrong” to set an example for the company. Although Didi has been allowed to announce his intention to register in Hong Kong and publish his findings, there is no indication that he will be able to re-introduce his programs to the public.
In an effort to strengthen the government and improve politics, Didi sought to raise funds for the government as a shareholder, according to two people involved in the project.
Founder and president Jean Liu joined a number of government-sponsored groups, including the Shouqi riders’ group and the CITIC government team, but these methods did not bring about unity.
Didi and CITIC Capital declined to comment. Shouqi did not respond to a request for comment.
The completion of the study and the reintroduction of its software into online stores is a priority in Hong Kong, said a former exchange official who was involved in testing the IPO candidates. Otherwise, “the business is unstable and does not meet the rules of exchange”.
But the HKEX review process also includes “standard” requirements, which test whether companies are complying with the rules. This was a barrier that forced Didi last year to re-arrange his IPO in New York instead.
Local authorities in China have told the Financial Times that Didi is violating stricter laws requiring motor vehicle applications to obtain three licenses from each working city: corporate permits, and the permits of every driver and vehicle.
At Shanghai’s main market, an employee of the traffic control office told FT: “[Didi] they do not have the proper permits, they work here illegally. ”
“We have paid a fine [Didi] more than Rmb100m, but with an online company, then the penalties we can pay will not be a big problem, “he added.
He also said that his department had tried to get city officials to block Didi’s page with its software, but he encountered difficulties because Didi’s page was not registered in Shanghai.
“We are still collecting the latest information, tools and evidence to present to the Department of Transportation. . . perhaps they can impose restrictions to make it more difficult, ”he added. Didi was one of a group of high-priced horse-drawn carriers invited to a meeting in Shanghai in October, November and December, he said.
A number of government officials indicate that in December Didi was hit by a small fine for hundreds of dollars as a result, about Rmb10,000 ($ 1,570) in several cities across the country. On November only 44 percent of Didi’s rise was fully compliant, although the company has performed well since early 2021.
Even in areas where Didi has advanced, such as the southern city of Jieyang, where he has obtained work permits, difficulties remain.
“Didi has had the challenge of operating safely and consistently,” the city transport agency said last month. “They have stopped believing in them.”
Jieyang’s boss told FT: “Didi is working with us on the repair, but the visible results are still on track… Progress is slow.”
Didi declined to comment on the interest rate and compliance. A person close to Didi’s main group said that Hong Kong’s exchange required Didi to own 70 to 80 percent of the company’s 100 major cities, but it was impossible for Didi to do so immediately.
“HKEX lowering tracking requirements are essential [Didi] able to write there. . . At the moment there is no way for any ladder company to be registered there, ”he said.
The person further added that at present it is not known whether the exchange will reduce its standards to suit the company. Enemy Didi Dida launched the Hong Kong IPO route in the fall of 2020, but it has not been mentioned yet.
Additional reports of Maiqi Ding in Beijing
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