China to conclude Didi probe, lift ban on new users - report

Chinese regulators are reportedly concluding year-long probes into Chinese ride-hailing company Didi and two other US-listed tech firms, preparing as early as this week to lift a ban on their adding new users.

The Wall Street Journal cited people familiar with the discussion as saying that regulators also plan to allow the mobile apps of Didi, logistics platform Full Truck Alliance Co. and online recruitment firm Kanzhun Ltd. back on domestic app stores, also as early as this week.

The apps were removed last July when Chinese authorities opened data-security probes into the companies on national security grounds.

With concerns growing over a deterioration in China's economic outlook, Beijing has moved to pause its campaign to tighten its grip on homegrown tech giants and their data, the WSJ said.

The three companies went public in the US last June, raising nearly $7bn in total. Shortly afterwards, China's internet regulators began cybersecurity reviews. Didi was hit particularly hard, with its market value tumbling in the following months, and less than a year after listing its shares in the US, the Beijing-based company decided to delist from the New York Stock Exchange.

According to the WSJ, Chinese government authorities including the Cyberspace Administration of China conveyed the plan in meetings last week with executives from Didi, Full Truck Alliance, also known as Manbang Group, and Kanzhun.

Authorities are expected to deliver a conclusion of the probes into these companies around the same time. It was understood the three companies are expected to face financial penalties, with a relatively large fine for Didi, and relatively lenient ones for the other two.

The companies are also expected to offer 1% equity stakes to the state and give the government a direct role in corporate decisions.

At 1150 BST, Didi shares were up 53% in pre-market trade at $2.83.