China to fine ride-hailing giant Didi more than $1 bil: reports

china to fine ride-hailing giant didi more than $1 bn: reports

Chinese regulators are reportedly preparing to fine ride-hailing behemothic Didi more than than $ane billion.

China is preparing to hit ride-hailing giant Didi with a fine of more than $i billion to wrap up a long-running probe, media reports said, boosting investor hopes that the land's tech crackdown is winding downward.

Didi, once known as China'southward answer to Uber, has been one of the highest-profile targets of the widespread clampdown on the sector, which saw years of delinquent growth and supersized monopolies before regulators stepped in.

The fine—imposed over Didi'due south cybersecurity practices—would amount to more four percent of its $27.3 billion full revenue final twelvemonth and pave the manner for its new share listing in Hong Kong, The Wall Street Journal reported Tuesday.

Citing unnamed sources familiar with the matter, the Periodical said that once the fine is announced, the government will ease its restrictions on Didi'south operations.

The firm was prevented from adding new users and its apps were removed from online stores in China by regulators.

The WSJ report triggered a rally in Chinese tech shares in Hong Kong on Wed, with investors hopeful that the two-year regulatory storm that swept the sector was nearing its end.

East-commerce giant Alibaba soared four percent, while gaming titan Tencent gained two.5 percent in early trade.

Didi got into hot water in June final year afterwards it pressed alee with an IPO in the United States, reportedly against Beijing'due south wishes.

Days later on it raised $4.iv billion in New York, Chinese regime launched a cybersecurity probe into the company, sending its shares plunging.

If confirmed, Didi's fine would be the biggest imposed on a Chinese tech company since Alibaba was told to pay $ii.75 billion in April 2021 every bit punishment for anti-competitive practices.

Didi did not reply immediately to an emailed request for comment.

Its shareholders voted to delist the firm from New York in May.

That move is expected to pave the fashion for a Hong Kong listing that was reportedly put on hold after People's republic of china's top internet watchdog told executives their proposals to prevent security and data leaks were bereft.

Mainland china'southward regulatory crackdown has eased this year equally information technology grapples with the economic fallout from its zero-Covid strategy, with the country struggling to attain its 5.v percent growth target.

Still, there is yet a strict regulatory environment for tech firms: President Xi Jinping last month called for stronger oversight and better security in the financial tech loonshit.

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