{"id":39641,"date":"2022-06-06T23:54:10","date_gmt":"2022-06-06T23:54:10","guid":{"rendered":"https:\/\/harchi90.com\/didi-stock-jumps-50-on-report-that-chinas-probe-is-ending\/"},"modified":"2022-06-06T23:54:10","modified_gmt":"2022-06-06T23:54:10","slug":"didi-stock-jumps-50-on-report-that-chinas-probe-is-ending","status":"publish","type":"post","link":"https:\/\/harchi90.com\/didi-stock-jumps-50-on-report-that-chinas-probe-is-ending\/","title":{"rendered":"Didi stock jumps 50% on report that China’s probe is ending"},"content":{"rendered":"
That’s according to the Wall Street Journal, which reported Monday, citing unidentified sources, that Beijing’s cybersecurity review of the ride-hailing giant was about to wrap up. The move would allow Didi to return to app stores in mainland China, potentially as soon as this week.<\/div>\n
The report, which comes almost one year after the company was first hit by regulators and had its app banned in China, sent its shares in New York up 53% in premarket trading on Monday.<\/div>\n
Didi (DIDI) isn’t the only company said to be out of the woods. Two other US-listed Chinese firms – logistics provider Full Truck Alliance (YMM) and online recruitment platform Kanzhun (BZ) – are also reaching the tail end of their respective data security probes, and will have access to app stores restored, too, according to the Journal. <\/div>\n

Shares of those companies jumped 27% and 21% in premarket trade on Monday, respectively. Didi, Full Truck Alliance and Kanzhun did not immediately respond to a request for comment.<\/p>\n

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The conclusion of the cybersecurity review comes too late to save Didi from an ignominious retreat from Wall Street just a year after it listed, and will have further consequences for the company.<\/p>\n

All three companies are set to be fined, with the largest levy against Didi, sources told the Journal.<\/p>\n

They will also be expected to hand over 1% in equity to Chinese authorities, giving the government an official role in decisions, according to the newspaper.<\/p>\n

End of a chapter<\/h3>\n<\/p>\n

The news caps a dramatic year for what was once one of China’s most celebrated and valuable companies.<\/p>\n

Didi launched a blockbuster initial public offering in the United States last June, raising $ 4.4 billion.<\/p>\n

But just days later, Chinese authorities banned the service from app stores in the country, and initiated the cybersecurity probe. That investigation turned the company into a poster child for Beijing’s crackdown on tech firms, and stopped it from registering new users.<\/div>\n
Since then, almost 90% of its market cap has been wiped out, plunging from nearly $ 70 billion a year ago to roughly $ 9 billion now. <\/div>\n
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