Didi Global, China’s largest ride-hailing company, has seen its losses increase after Beijing ordered online stores not to sell the company’s app.
The company reported an operating loss of $6.3 billion (£4.7 billion) for the first nine months of the year, as revenues in China fell by 5% in the third quarter.
The Chinese crackdown came just days after Didi debuted on the New York Stock Exchange at the end of June.
It announced this month that it will relocate its share listing from the United States to Hong Kong.
Didi has become one of the most visible targets of Beijing’s crackdown on the country’s technology industry in recent months.
The restrictions imposed by Chinese authorities have had a significant impact on its share price in the United States.
Since its debut on the New York Stock Exchange less than six months ago, the company’s value has dropped by 65 percent.In its most recent investor report, the company also stated that its board of directors 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,” Didi said.
Didi’s announcement early in December that it planned to leave the US stock market came on the same day that the US Securities and Exchange Commission said it had finalised rules that would mean US-listed foreign companies can be delisted if their auditors do not comply with requests for information from regulators.
“Following careful research, the company will immediately start delisting on the New York stock exchange and start preparations for listing in Hong Kong,” the company said at the time.
Didi also stated in its announcement on Thursday that Daniel Zhang, the CEO of Chinese e-commerce giant Alibaba, who has served as a director on its board since 2018, has resigned from the position.
In addition to being scrutinised by Chinese regulators, Didi now faces stiff competition in its home market from ride-hailing services launched by carmakers Geely and SAIC Motor.
