Airbnb is closing out all of its listings in China. It will maintain an office in the country to facilitate listings in other countries, but all residences it has listed in China will be taken down by the summer.

Airbnb formally opened for business in mainland China in 2016 but has faced increasing pressures from domestic competition. Increased cost and complexity to operate combined with pressures from pandemic lockdowns combined to make continued operation untenable. Stays in China arranged on the platform only accounted for 1% of revenue for the last few years.

Outbound travel is believed to offer a continued opportunity. Airbnb will maintain hundreds of employees in an office in Beijing for that purpose.

Airbnb’s shares have dropped more than 30% this year as part of a broader selloff in tech stocks, but it still trades above its 2020 IPO price of $68. Business has risen as pandemic restrictions have lifted and people began traveling again.