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Shares of Chinese ride-hailing giant Didi surged more than 50% in pre-market trade in the U.S. on Monday after the Wall Street Journal reported that regulators in China are concluding investigations into the company.
The WSJ report said authorities would lift a ban on Didi adding new users as early as next week and reinstate the company’s app in domestic app stores, citing people familiar with the matter.
Didi shares jumped more than 50% in pre-market trade.
Since the end of 2020, China has tightened regulation on its domestic technology sector in areas from antitrust to data protection. But there have been signs of regulatory easing from Beijing as China deals with the economic fallout from weeks of lockdown in Shanghai.
Didi has been one of the worst-hit companies as a result of Beijing’s crackdown. Last year, the ride-hailing firm went public in the U.S. But just days after the initial public offering, Chinese regulators opened a cybersecurity probe into the company.
In July, the Cyberspace Administration of China (CAC) accused Didi of illegally collecting users’ data and ordered its app removed from local app stores.