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00:00Your initial reaction when you heard the news. Not incredibly surprised but it's big news. I mean this is not a small company. We're talking about a 37 billion dollar market cap company. It's you know considered to be one of the darlings in terms of the homegrown tech start up in China. I think you've had some bread from there. The Service Space Administration of China CIC essentially is a regulatory body that is pulling the strings here. And it goes back to earlier in the year when evidently they were told this is the directors of data hold off doing the IPO because we want to have a closer look on it. So it may be that they run the gauntlet. And then what you're seeing now is you know the full force of the regulators saying you're going to have to delist. But it's big breaking news. Tell me here Sam how much of it is also done to the and the pressure from Beijing to come home as it were. And you know these geopolitical tensions do you think that plays a role in all this. I think it does. I mean it's one of those ones you'd kind of like to keep the politics aside but you can't. I mean Xi Jinping wants to bring capital home but I think he's forgetting that capital will only go where there's confidence. And if you continue to put a cloud of uncertainty around the regulatory environment people aren't going to be buying these stocks. And you can see it across the board today. Just look at Buy Do which owns a small part of that tree Deedee Barba and other names as well. May planting citrus being sold off. So so Sam talk to us then how you would approach and whether the markets correct and using the old lenses to value these companies. Because I mean Ali Baba's down to valuations just crushed. I mean it's 42 percent done so far this year compared to its peak really. It's almost as if it's not the same company anymore. How would you be approaching these valuations from a buy side perspective. So I mean we think Bob is undervalued valley players are coming in we're actually buying it. We think it's undervalued because if you look at its core businesses its third party e-commerce marketplace platform team will top out its cloud business and group etc. And it's still if you look at in the sum of the parts what people are confusing here is the daily things not about the VIX structures. It's about national security data protection. And the cyberspace administration has made that very very clear. On the other side of the coin I would argue that you've had 10 sent by to Bob Eric except to comply. And I would not mix up what's happening with the antitrust monopoly issues with what's happening in terms of national security and data protection. You've got to divorce the issues and look at it through a very clear lens. So it's an interesting days. The Chinese tech you know people are not finding many reasons to buy them. But I would I'd be looking at the ones which are being sold off who have already done their listing at home in Hong Kong. And remember it's fungible. So that's a very important thing to remember. So it's going to be a pretty rocky day. And I don't think we've heard the last of this. Some you know this was a industries grouping if you will which many people thought was uninvestigated but long term. Well who knows. The point I trying to get out here is we've got this structure of the Chinese economy evolving and we've got things such as of course do circulation and we've got a joint prospering common prosperity. These things are going to have an impact especially when they limit companies like Barber and Tencent. Just stop buying all the little minnows that they can before they can actually grow. It might engender a lot more competition in the longer term. Yeah. I see four clear things in terms of four quadrants. You've got fair competition the anti-trust regulations you have social well-being reforms. It's about labor protections and welfare rights etc. Then you've got the stuff the data data protection and privacy national security and then you've got your common prosperity which is about affordability and also the middle class in terms of income inequality issues. You've got a divorcee to them and look at them through each of the lens. And then if you talk about competition I think most of that is actually being addressed already by the state administration of market regulation. So you've already seen the issues with Barber and 10 cent the most that come through.

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Stonehorn Global Partners Le Cornu on Didi’s Plan to Delist

Stonehorn Global Partners Co-Founder & CEO Sam Le Cornu discusses Didi's plans to delist from the New York Stock Exchange, barely five months after its ill-fated IPO drew the wrath of regulators in Beijing. He speaks to Yvonne Man, David Ingles and Rishaad Salamat on 'Bloomberg Markets Asia'.

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