China to Wrap Probe into DiDi

China to Wrap Probe into DiDi
Photo: 06.06.2022 70

China's antitrust regulator is concluding  its investigation into DiDi, The Wall Street Journal reported

Authorities are expected to lift a ban on adding new Didi users as early as next week and reinstate the company's app to local app stores. DiDi faces a financial penalty, the Journal's sources said.

DiDi's stock jumped more than 50 percent in premarket trading in New York.  Investors have been awaiting the outcome of the probe into DiDi,launched in July after the ride-hailing firm proceeded with its $4.4 billion IPO in the U.S. despite Beijing's objections. 

DiDi shareholders last month agreed to "voluntarily" delist the company from the New York Stock Exchange, a necessary step for the company to meet Beijing's demands and to resume normal operations. 

Last Thursday, DiDi said it had submitted a delisting notification, which would  take effect in about 10 days.

The ride-hailing giant lost $70 billion of market value at one point after regulators suspended its in-store apps, imposed curbs on overseas listings and tightened up on DiDi's industry after its June 2021 IPO. 

Since the end of 2020, China has tightened regulation on its domestic tech sector, in areas  from antitrust to data protection. However, Beijing has gone for some regulatory easing as China is still recovering from the economic fallout of Shanghai's long lockdown.

digital markets  China 

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