Didi Global: What Hong Kong listing could mean for the stock

Didi Global stock climbs as The Wall Street Journal reports that the ride-hailing firm is exploring a listing in Hong Kong. The Cyberspace Administration of China appears to have brought up the idea in talks with executives from the company.

Beijing is currently conducting a probe into Didi, along with logistics platform Full Truck Alliance and online recruiter Kanzhun, investigating whether the data-rich Chinese companies with U.S.-listings could pose a national security risk.

A listing in Hong Kong would mean that a potential delisting from U.S. markets – if forced by the Beijing government or by choice – would cause less problems for U.S. or other investors seeking to exchange shares. China is reportedly considering new legislation that would prevent domestic companies carrying large amounts of customer data from going public on foreign stock exchanges.

Full Truck Alliance was already in discussions for a Hong Kong listing, which could occur next year, while the other two companies declined to comment.

Didi Global has fallen over 40% since its IPO in June due to increasing investor concerns about Beijing interference in the Chinese economy and stock market.

Author: Lucas Heilman, Seeking Alpha