Didi shares surge after report that regulators are ending probes
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Chinese ride-hailing companies share shares DidiPre-market trading in the U.S. increased by more than half on Monday following the election. Wall Street JournalIt was reported that the regulators have concluded their investigation into the company.
According to WSJ’s report, Didi would be able to add new users in as little as one week. The company’s app will also be available for download on domestic apps stores.
Pre-market trading saw Didi share prices rise by more than half a percent
China tightened its regulation of the domestic technology sector since 2020. This includes areas ranging from antitrust to cybersecurity. data protection. There have also been signs of regulatory easingChina has a deal with Beijing economic falloutStarting at weeks of lockdown in Shanghai.
As a consequence of Beijing’s crackdown, Didi was one of China’s worst-hit businesses. The ride-hailing company was shut down last year. went public in the U.S.However, just days following the initial public offer, Chinese regulators opened an a cybersecurity probe into the company.
Didi was implicated by China’s Cyberspace Administration of China (CAC), in July. illegally collecting users’ dataAnd ordered the app to be removed from all local apps stores.
The WSJ reported that Chinese authorities will also end probes into two other U.S.-listed Chinese tech firms — Full Truck Alliance and Kanzhun — which were also under investigation.
CNBC tried to reach Didi, Full Truck Alliance, and Kanzhun during non-office hours but has not received a reply.
The WSJ reported that Didi was informed by Chinese officials and the CAC about plans to stop the probes. According to the WSJ, Didi will be facing a heavy fine while Kanzhun and the Full Truck Alliance are likely to receive smaller penalties.
Didi disclosed in May that they were being investigated by the U.S. Securities and Exchange CommissionIn relation to the IPO it held last year.
Didi shares fell by approximately 85% from its IPO price at $14. Didi stated in December that they will be delist from the New York Stock ExchangeInstead, you can list your property in Hong Kong.