Didi shares plunge over 20%

Just five months after its debut, ride-hailing giant Didi Global said it plans to withdraw from the New York Stock Exchange and pursue a Hong Kong listing, a stunning reversal as it bends to Chinese regulators angered by its US IPO.

Reaction from investors was swift: the company’s shares fell 22.17 per cent, losing about $8.4 billion in market value. At their Friday close of $6.07, Didi shares have fallen about 57 per cent since their June 30 IPO price.

“Following careful research, the company will immediately start delisting on the New York stock exchange and start preparations for listing in Hong Kong,” Didi said on its Twitter-like Weibo account.

Didi did not elaborate but said in a separate statement it would organize a shareholder vote at an appropriate time and ensure its New York-listed stock would be convertible into “freely tradable shares” on another globally recognized exchange.

Market participants said the decision ramps up uncertainty for investors in US-listed shares of Chinese companies. US-listed shares of Alibaba , Baidu and other Chinese firms fell on Friday.

“If you are a money manager and don’t understand what the rules are, it’s easier to just sell and move your money where you better understand the rules of the game,” said Michael Antonelli, market strategist at Baird.