Just days after Didi’s Wall Street debut last summer, the Chinese government banned the service from app stores in the country, and launched a cybersecurity investigation into the company. That investigation made the company a model of Beijing’s crackdown on tech companies, wiping tens of billions of dollars from its market capitalization.
Didi’s troubles came to a head in December when it said it would exit the US stock market without giving a reason. The move was widely seen as an attempt to appease officials in China who were unhappy with the way it was being made public abroad.
Didi (DIDI) will hold an extraordinary general meeting in Beijing Monday evening, where it is expected to formalize the process of withdrawing from Wall Street. Some of the top tech investors in Asia are among Didi’s shareholders, including: SoftBank †SFTBF† and Tencent †TCEHY††
The Chinese company will then be able to move forward with a plan to shares in Hong Kong, which it announced late last year. It has previously said it will not list in any other market until it withdraws from the NYSE.
While Didi called his decision “voluntary,” the company “implicitly indicates that the deletion is caused by ongoing cybersecurity review,” said Cherry Leung, an analyst at Bernstein.
She wrote in a report last week that “the expulsion from the US is necessary for Didi to cooperate” with the review by Chinese regulators.
Didi is also under scrutiny in the United States: earlier this month, it announced that it was being investigated by the Securities and Exchange Commission for the botched IPO.
The company’s stock has crashed nearly 70% so far this year.
“The company is fully cooperating with the cybersecurity review in China,” it said in a statement in April.