Shares of DiDi Global (DIDI) are up 50% on news that regulators in China are ending their
investigation and crackdown of the ride hailing company.
Media reports say that authorities in Beijing plan to lift a ban on DiDi Global as early as next
week and reinstate the company’s app in domestic app stores.
Since the end of 2020, China has tightened regulation on its domestic technology sector in
areas from antitrust to data protection, and DiDi Global has been singled out for punishment.
But there are now signs that the Chinese government is easing its crackdown as the country of
1.4 billion people grapples with the economic fallout from weeks of COVID-19 lockdowns.
DiDi Global has been one of the worst-hit companies by Beijing’s crackdown. Last year, the
ride-hailing firm went public in the U.S. But just days after its initial public offering (IPO),
Chinese regulators opened a cybersecurity probe into the company.
In July, the Cyberspace Administration of China (CAC) accused DiDi of illegally collecting users’
data and ordered its app removed from local Chinese app stores.
DiDi Global is expected to be issued a large fine by Chinese authorities, which will effectively
end the regulatory probe into the company, freeing it to operate normally once again.
In May, DiDi revealed that it was being investigated by the U.S. Securities and Exchange
Commission (SEC) in relation to its IPO last year.
DiDi shares have fallen 85% since its IPO last summer to trade at $1.85 U.S. before today’s big
move higher.
DiDi Global said last December that it plans to delist its shares from the New York Stock
Exchange (NYSE) and seek a new listing in Hong Kong.
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