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Transport

China's Didi surges 50% after regulators reportedly end probe into ride-hailing major

Chinese authorities are also reportedly preparing to allow Didi’s apps back on domestic app stores as early as this week

Shares of Chinese ride-hailing giant Didi surged more than 50% following news that Chinese authorities are planning to wrap up their investigation into Didi Global Inc as early as this week.

Didi's main apps are also to be restored to mobile stores, according to a report in the Wall Street Journal.

Since days after its New York IPO in July last year, Didi has been the target of a cybersecurity probe and has been one of the worst-hit companies by Beijing's regulatory tightening.

The Cyberspace Administration of China removed Didi's app from local app stores in July after accusing it of collecting users' data illegally.

In May, Didi disclosed that the US Securities and Exchange Commission was looking into its 2014 IPO.

Since its IPO at US$14, Didi Global shares have fallen over 85%.

The company also announced in December it would delist from the New York Stock Exchange and list in Hong Kong instead.

Reports indicate that Didi is expected to face a relatively large fine by the regulators with the company also expected to offer 1% equity stake to the state and give the government a direct role in corporate decisions.

In a meeting attended by tech executives in May, China's top advisory body, the Chinese People's Political Consultative Conference, supported a stronger digital economy, signaling a regulatory respite for tech giants.

Didi’s American depositary receipts rose more than 50% on the news.

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