BEIJING: China is preparing to hit ride-hailing large Didi with a fine of more than US$1 billion dollars to wrap up the long-running probe, mass media reports said, enhancing investor hopes that this country’s tech crackdown is winding lower.
Didi, once known as China’s answer to Uber, has been one of the highest-profile focuses on of the widespread clampdown on the sector, which usually saw years of runaway growth and supersized monopolies before government bodies stepped in.
The fine — imposed over Didi’s cybersecurity practices : would amount to over 4 per cent of its US$27. 3 billion total revenue last year and pave the way for its new talk about listing in Hk, The Wall Street Journal reported Tuesday (Jul 19).
Citing unnamed sources familiar with the matter, the Journal declared that once the fine is announced, the government will certainly ease its limitations on Didi’s procedures.
The company was prevented from adding new customers and its apps were removed from online stores within China by regulators.
The WSJ report triggered a rally in Chinese tech shares within Hong Kong on Wednesday, with investors positive that the two-year regulating storm that swept the sector had been nearing its finish.
E-commerce large Alibaba soared four per cent, while gaming titan Tencent acquired 2 . 5 percent in early trade.
Didi got into warm water in June a year ago after it pushed ahead with an BÖRSEGANG (ÖSTERR.) in the United States, reportedly against Beijing’s wishes.
Days after it raised US$4. four billion in Ny, Chinese authorities launched a cybersecurity probe into the company, delivering its shares falling.
If verified, Didi’s fine would be the biggest imposed on the Chinese tech firm since Alibaba was told to pay US$2. 75 billion in April 2021 since punishment for anti-competitive practices.
Didi did not respond instantly to an emailed request for comment.
Its shareholders voted in order to delist the company from New York in-may.
That move is expected to pave the way for a Hong Kong listing that was reportedly put on hold after China’s top Web watchdog told professionals their proposals to prevent security and information leaks were insufficient.
China’s regulating crackdown has reduced this year as it grapples with the economic after effects from its zero-COVID technique, with the country fighting to reach its five. 5 per cent growth target.
However , there is still the strict regulatory atmosphere for tech firms: President Xi Jinping last month required stronger oversight and better security in the financial tech market.