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Tencent increases stake in Chinese ride-hailing giant Didi

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Chinese Internet giant TencentIt has increased its share in ride-hailing company DidiThis pushed the U.S. listed company’s shares up by more than 8% Wednesday.

Pre-market trading on Thursday saw Didi shares fall by 5%.

A regulatory filing released Wednesday shows that Tencent has added approximately 1.78 Million Class A Ordinary Shares to its stake in Didi at the close of 2012. Tencent now holds 7.4% of Didi’s shares as of December 31, up from 6.8% when the disastrous initial public offering of ride-hailing company in June was made.

Didi, a controversial company right now, reportedly went ahead with an American listing despite regulators’ concerns. China’s cyberspace regulator reacted to Didi’s IPO within days. opened a cybersecurity review into the tech firm. Didi shares lost almost 70% from the IPO price.

Didi stated that it would in December. delist from the New York Stock ExchangeInstead, make plans for Hong Kong’s public offering.

Tencent’s increasing share in Didi is also in stark contrast to recent company stake reductions. Tencent was acquired by Didi last month. cut its stakeSingapore-based gaming and E-commerce company Sea, and in December, the internet giant said it would give most of its shares in online retailer JD.com away to shareholders. Tencent has been a consistent investor in many companies around the globe, including in China.

These moves were made after several months of tightening regulations in China, in which Beijing had issued new directives. anti-monopoly rulesIn areas ranging from data protectionTo the governing of algorithms.

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