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Shares of Chinese car giant Didi rose more than 50% in pre-market trade in the U.S. on Monday after The Wall Street Journal reported that Chinese regulators are concluding investigations into the company.
The Journal report said authorities will lift the ban on Didi adding new users next week and reinstate the company’s app in national app stores, citing people familiar with the matter.
Didi’s shares rose more than 50% in pre-market trading.
Since the end of 2020, China has tightened regulation of its national technology sector in areas from antitrust to data protection. But there have been signs of regulatory easing from Beijing as China faces the economic consequences of the weeks of blockade in Shanghai.
Didi has been one of the companies hardest hit by the crackdown on Beijing. Last year, the public transportation company went public in the U.S., but just days after the initial public offering, Chinese regulators opened a cybersecurity investigation into the company.
In July, the China Cyberspace Administration (CAC) accused Didi of illegally collecting user data and ordered that its application be removed from local app stores.
The Journal reported that Chinese authorities will also end investigations into two U.S. technology companies listed in the United States, the Full Truck Alliance and Kanzhun, which were also under investigation.
CNBC contacted Didi, Full Truck Alliance and Kanzhun outside of office hours and has not yet received a response.
Chinese authorities along with the CAC told Didi and the other two companies about plans to end the probes at a meeting last week, the WSJ reported. Didi is expected to face a large fine, while Full Truck Alliance and Kanzhun will face smaller ones, the WSJ reported.
In May, Didi revealed that it was being investigated by the U.S. Securities and Exchange Commission regarding its IPO last year.
Didi’s shares have fallen about 85% since its $ 14 IPO. Didi said in December that he would withdraw from the New York Stock Exchange and seek listing in Hong Kong.
Read the full Wall Street Journal news here.