DidiAfter the announcement that the company would delist the New York Stock Exchange in favor of a Hong Kong listing, shares rose as high as 14% Friday in U.S. Premarket Trading

The regulatory problems in China have hampered the shares of this ride-hailing firm since it was founded. initial public offeringThis stock was listed in the U.S. earlier in this year. It is now down 40% from the initial price of $14 per shares.

At approximately 4:45 AM, Didi’s shares were up 9.5%. ET.

According to the company, it plans to delist from New York Stock Exchange immediately and start preparations for an independent listing in Hong Kong. A statement stated that U.S. stocks will be transformed into “freely-tradeable shares” via another international exchange.

Mirabaud Equity research’s global TMT analyst Neil Campling said that Didi shares are likely to be gaining because of technical factors.

“Risk of a delisting could trigger some technical cover trades as shorts may seek to close their positions rather than deal with hassles of waiting out delisting time with custodians,” Campling said in a note Friday morning.

Beijing regulators have tried to maintain control over large Chinese internet companies by flexing their muscle. Alibaba founders were the first victims of this clampdown. Jack Mahis fintech firm Ant Group. Ant Group’s IPO was stopped late last year due to criticisms by the Chinese tech billionaire.

Beijing soon expanded its crackdown on tech to encompass ride-hailing. Chinese regulators had raised concerns regarding Didi’s data security before June’s IPO. Didi received a review by Beijing’s cyberspace authority two days after it was launched. Officials ordered Chinese app shops to delete Didi’s main application a week later.

Bloomberg reports that Chinese regulators wanted the executives of the company to develop a plan for delisting from the U.S. Didi refused to comment.

Washington also seeks tighter restrictions for Chinese businesses that are listed on American exchanges. The U.S. Securities and Exchange Commission approved rules Thursday that would allow foreign stock to be delisted if they fail to comply with audit requirements.