Didi’s regulatory nightmare in China may be almost over.
It is according to the wall street journal, which reported on Monday, citing unidentified sources, that Beijing’s cybersecurity review of the ride-hailing giant was nearing completion. The move would allow Didi to return to app stores in mainland China, potentially as early as this week.
The report, which comes almost a year after the company was first hit by regulators and banned in China, its New York shares soared 53% in premarket trading on Monday.
Have I got (HAVE I GOT) isn’t the only company said to be out of the woods. Two other Chinese companies listed in the United States — the logistics service provider Full Truck Alliance (YMM) and the online recruitment platform Kanzhun (BZ) – are also reaching the end of their respective data security probes and will also have access to restored app stores, according to the Journal.
Shares of those companies jumped 27% and 21% in premarket trading on Monday, respectively. Didi, Full Truck Alliance and Kanzhun did not immediately respond to a request for comment.
The conclusion of the cybersecurity review comes too late to save Didi from an ignominious retirement from Wall Street just a year after its listing, and will have other consequences for the company.
All three companies are expected to be fined, with the largest levy against Didi, sources told the Journal.
They will also have to hand over 1% of the capital to the Chinese authorities, giving the government an official role in the decisions, according to the newspaper.
The news caps off a dramatic year for what was once one of China’s most famous and valuable companies.
Didi launched a successful initial public offering in the United States last June, raising $4.4 billion.
But a few days later, Chinese authorities banned the service from the country’s app stores and launched the cybersecurity investigation. The investigation turned the company into the star of Beijing’s crackdown on tech companies and prevented it from registering new users.
Since then, almost 90% of its market capitalization has been wiped out, plunging from almost 70 billion dollars a year ago to about $9 billion today.
Didi announced last December that he would exit the US stock market, without giving a reason. The move was widely seen as an attempt to appease Chinese officials unhappy with how it was publicized overseas.
Last month, shareholders vote to proceed with the withdrawal after the company said regulators would not be able to conclude their investigation as long as it remains listed on Wall Street. The company plans to list its shares in Hong Kong but has not established a precise timetable.
Didi is also the subject of intense scrutiny in the United States. Earlier this month he revealed he was being investigated by the Securities and Exchange Commission for the failed IPO.