DiDi's Plans To Delist From New York Send Alibaba, Other Major Chinese Tech Names Sinking In HK

$Alibaba(BABA.US)$ , $JD.com(JD.US)$ , $Tencent(TCEHY.US)$ , $Baidu(BIDU.US)$ ,and $XPeng(XPEV.US)$ shares traded in the red in Hong Kong.

What’s Moving? Jack Ma-founded Alibaba’s shares fell 4.49% to HKD 117.10, while rival JD.com saw its shares decline 6.73% to HKD 319 after $DiDi Global (Delisted)(DIDI.US)$ said that its board of directors had authorized the company to initiate procedures to delist the company’s shares from the New York Stock Exchange.

“The Board has also authorized the Company to pursue a listing of its class A ordinary shares on the Main Board of the Hong Kong Stock Exchange,” said DiDi in its statement.

Why Is It Moving? In July, the Cyberspace Administration of China ordered mobile app stores to remove 25 apps operated by DiDi shortly after the company conducted its U.S. IPO. The Chinese regulator also prohibited the company from onboarding new users.

Meanwhile, $Alibaba(BABA.US)$ , which is listed in the U.S. through a variable interest entity, could also face heat as China is looking to ban domestic companies seeking overseas listing through such a mechanism, as per a Bloomberg report. Alibaba went public in Hong Kong in November 2019.