Didi Global’s stock fell sharply on the New York Stock Exchange of America after the Chinese government imposed restrictions on the company.
Another Chinese company is facing heavy losses after the ban imposed by the Chinese government. Let us tell you that since its listing on the New York Stock Exchange at the end of June this year, the Chinese administration has increased strictness on the company. After the increased strictness by the Chinese government after listing on the New York Stock Exchange, the company had said that they are shifting the listing of their shares from America to Hong Kong.
The company’s losses increased after the ban imposed by the Chinese government
Even after talking about the listing shift of the shares, the Chinese government did not give any relief to the company. The Chinese government has instructed mobile app stores to remove Didi Global’s app from its platform. Therefore, after the restrictions imposed by the Chinese government, there has been a huge increase in the losses of the app-based company ‘Didi Global’.
According to media reports, the revenue of Didi Global, which provides cab services in China, has registered a decline of 5 percent in the third quarter. So far, the company has incurred a loss of $ 6.3 billion in the first 9 months of the current financial year.
Share prices fell by up to 65 percent within 6 months of listing
Let us tell you that Didi Global is not the only company that has fallen victim to the strictness of the Chinese government. Before Didi Global, the Chinese government has tightened its grip on many other IT companies. The name of Didi Global has also been included in the companies against which action has been taken by China, the big and prominent companies involved.
Didi Global’s stock fell sharply on the New York Stock Exchange of America after the Chinese government imposed restrictions on the company. Share prices of Chinese company Didi Global have fallen by 65 percent within six months of listing on the New York Stock Exchange at the end of June this year.
Let us tell you that in order to avoid the strictness of the Chinese government, the company had informed about the plan to exit the New York Stock Exchange in early December itself. But, on the same day, the New York Stock Exchange also said that foreign companies listed on the American stock exchange will have to follow the set rules.