After suspending trading of the Chinese company in May, the New York Stock Exchange said its investigation into the company had determined it no longer meets minimum listing standards
Didi Chuxing’s delisting from the New York Stock Exchange could spell the end for Chinese stocks on Wall Street.
Following a $1bn (£673m) accounting error, shares in the hugely popular ride-hailing company plummeted 74% on the second day of its suspension.
The company is now considering a move to the Nasdaq.
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After the suspension, Didi said it would investigate its business “to enhance internal governance, operational controls and risk management procedures”. The investigation followed an investigation into how the company had accounted for unearned revenue over the last three years.
In a statement on Tuesday the NYSE said its investigation had concluded that “Didi Chuxing no longer meets the minimum listing standards for NYSE”.
The move follows a suspension imposed on Didi shares last month when the company admitted an “immaterial adjustment” to the value of some user-submitted content. Didi said the “transient impact” on revenue figures had to be accounted for, but would not have an impact on profits.
In a statement on Tuesday, the company said: “Didi Chuxing has commenced a comprehensive investigation into Didi Chuxing’s historical revenue and financial results. The Company will provide further information when the investigation is completed.”
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The company has been investing aggressively in the growth of its services. It bought Uber’s China arm in 2016, stepping up its efforts to fend off rivals, and expanded its operations into bike-sharing and electric scooters.
Didi made $23bn in revenue in 2016, and has said it will spend a further $20bn on expansion in 2017. With Uber gaining ground in China, Didi is looking to acquire or invest in other companies as it tries to defend its lead.