Senior Chinese officials have pushed back on proposed punishments for DiDi Global Inc (NYSE:DIDI) submitted by the nation's cybersecurity regulator, jeopardizing its Hong Kong listing plans, Bloomberg reports.
Didi has been talking with the Cyberspace Administration of China about fines and other penalties after proceeding with a U.S. IPO last June over the regulator's objections. However, CAC's proposed punishments failed to satisfy the central government.
Also Read: DiDi Had To Postpone Its IPO After Jack Ma's Ant: Bloomberg
DiDi, once worth about $80 billion, will likely see its stock traded over the counter as it prepares to exit New York bourses under Beijing's orders.
The unlisting will prompt a selloff by investors mandated not to hold unlisted shares.
Japan's SoftBank Group Corp (OTC:SFTBY) (OTC:SFTBF), which can hold unlisted stock, has seen its 20% stake fall from a peak of about $16 billion to less than $2 billion.
Days after its $4.4 billion IPO, China placed DiDi under a cybersecurity probe, and its services were taken off the country's app stores, triggering an onslaught of regulatory actions.
Price Action: DIDI shares traded lower by 5.59% at $1.78 on the last check Thursday.
