After crackdown, China’s ride-hailing company Didi experiences losses that are more severe

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Didi Chuxing is losing ground in China after Beijing made it clear that online shops would not sell the company’s app.

The firm reported an operating loss of $6.3bn (£4.7bn) for the first nine months of year as revenues in China fell by 5% in the third quarter.

Just days after Didi’s New York Stock Market debut, the Chinese crackdown occurred.

It said this month it plans to move its US-based share listing to Hong Kong.

Didi, who has been the target of Beijing’s crackdown on China’s technology sector in recent months, is becoming one of the most visible targets.

China’s authorities have placed restrictions on the company, which has had a devastating impact on its shares in the US.

Since its inception less than six years ago, the company’s stock exchange value has dropped by 65%.

According to the company’s most recent report to investors, it also stated that the board granted permission to the firm to seek a listing for its shares on Hong Kong Stock Exchange.

Didi stated that the company was executing its plans above and would update investors as necessary.

Didi announced its intention to exit the US stock exchange in early December. This was the day the US Securities and Exchange Commission stated that they had completed rules that will allow foreign-listed companies that are not US-listed to be removed from the US market if their auditors fail comply with regulators’ requests.

The company stated that it had done extensive research and would immediately begin delisting from the New York Stock Exchange. It also began preparations to list in Hong Kong.

Didi announced that Daniel Zhang (chief executive, Chinese ecommerce company Alibaba), who has been a member of its board since 2018, had resigned.

Didi is now under severe scrutiny by Chinese regulators. Didi also faces stiff competition from ride-hailing service providers SAIC Motor and Geely in its own market.

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