Didi shares surge after report that regulators are ending investigations

Shares of the Chinese transport giant Didi It rose more than 50% in pre-market trade in the US on Monday after The Wall Street Journal It reported that regulators in China are wrapping up investigations into the company.

The Wall Street Journal report said authorities will lift the ban on Didi’s addition of new users early next week and reinstate the company in local app stores, citing people familiar with the matter.

Didi shares jumped more than 50% in pre-market trading.

Since the end of 2020, China has tightened regulation of the domestic technology sector in areas from antitrust to data protection. but there was signs of regulatory facilitation From Beijing, where China deals with Economic repercussions From Weeks of lockdown in Shanghai.

Didi was one of the companies hardest hit as a result of the Beijing crackdown. Last year, the passenger transport company It was released to the public in the United States But a few days after the initial public offering, Chinese regulators opened a file Achieving cyber security in the company.

In July, the China Cyberspace Administration (CAC) charged Didi with Illegal collection of user data He ordered the removal of his app from the local app stores.

The Wall Street Journal reports that Chinese authorities will also end investigations into two other Chinese technology companies listed in the US – Full Truck Alliance and Kanzhun – which was also under investigation.

CNBC has reached out to Didi, Full Truck Alliance, and Kanzhun outside of business hours, and has yet to receive a response.

The Wall Street Journal reported that Chinese authorities along with CAC informed Didi and the two other companies of plans to end investigations at a meeting last week. The Wall Street Journal reported that Didi is expected to face a hefty fine, while Full Truck Alliance and Kanzhun will face smaller fines.

In May, Didi revealed that he is being Investigation by the US Securities and Exchange Commission Regarding the IPO last year.

Didi’s shares have fallen about 85 percent since it went public at $14. Didi said in December that she would Delisted from the New York Stock Exchange It is seeking a Hong Kong listing instead.

Read the full story from The Wall Street Journal here.