China ride-hailing giant Didi sees losses deepen after crackdown

Technology

Chinese ride-hailing giant Didi Global has seen its losses deepen after Beijing ordered online stores not to offer the company’s app.

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

The Chinese crackdown came just days after Didi made its New York stock market debut at the end of June. This month, it said it will move its share listing to Hong Kong from the US.

In recent months, Didi has become one of the most high-profile targets of Beijing’s clampdown on the country’s technology industry.

The restrictions placed on it by authorities in China have hit its share price in the US hard.  The company’s value on the New York Stock Exchange has fallen by 65% since its debut less than six months ago.

In its latest report to investors the firm also said that its board had authorised it to pursue a listing of its shares on the main board of the Hong Kong Stock Exchange.

“The company is executing above plans and will update investors in due course,” said Didi.

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