Didi’s $4.7bn loss shows damage of Beijing’s onslaught against Chinese tech companies

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Surprise disclosure comes as ride-hailing giant prepares for Hong Kong listing after forced exit from New York

Didi Global headquarters in Beijing, China. File photo: BLOOMBERG/YAN CONG

The ride-hailing giant is planning to work with Goldman Sachs, CMB International and CCB International on the shift, which could be a so-called listing by introduction, people familiar with the matter said. That arrangement, which does not involve any fundraising, requires little marketing and would allow US investors to swap their shares for the new stock in Hong Kong.

“It’s clear that many investors have underestimated the impact of the regulatory reforms,” said Justin Tang, head of Asian research at United First Partners. “Didi’s disclosure of its losses might be a benchmark for investors. Sentiment is still weak for these Chinese tech names and investors are focused on any reason to sell.”

 

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