(CNN Business) Didi’s nightmare with the regulators in China is likely to be over.
According to the Wall Street Journal, which reported Monday with unidentified sources, Beijing’s cybersecurity audit of the ride-hailing firm was set to conclude. This would enable Didi to reopen apps in mainland China as early as next week.
The news is just over a year since the companies first criticized by regulators and saw its app taken down in China. The country saw its shares in New York up 53% in the premarket on Monday.
Didi ( DIDI) isn’t alone. That is believed to be in good shape. Other US-listed Chinese companies, such as logistics service provider Full Truck Alliance ( YMM) and online platform for recruitment Kanzhun ( BZ), have also been at the end of their respective security probes and will be able to reaccess the app stores as per the Journal.
The shares of these companies rose 27 per cent and 21 per cent during premarket trade on Monday, and vice versa. Didi, Full Truck Alliance, and Kanzhun have not yet responded to our request for comments.
The conclusion of the cybersecurity audit is too late for Didi to be saved Didi from a humiliating withdrawal away from Wall Street just a year after its listing and could have more implications for the business.
The three companies are all set to be fined. The largest fine will be imposed on Didi. The most significant fine going to Didi sources has informed the Journal.
The company is also expected to pay 1 per cent of its equity to Chinese authorities, which will give the Chinese government an official authority to make decisions in the news.
This news is the culmination of a memorable year for China’s best famous and prestigious businesses.
Didi announced a massive first public offering (IPO) across the United States last June, which raised $4.4 billion.
Then, a few days later, Chinese authorities removed the website from the app stores in China and began a cybersecurity investigation. The investigation transformed the business into the symbol of Beijing’s crackdown on tech companies and stopped it from signing up new users.
Since then, more than 90 per cent of its market capitalization has been eliminated and dropped from almost $70 billion one year ago to around $9 billion.
Didi announced in December that it was planning to leave the US stock market without providing a reason. It was widely regarded as a way to please Chinese authorities who were dissatisfied with how it was marketed in other countries.
In the last month, shareholders decided to approve the decision to withdraw following the announcement that regulators wouldn’t be able to finish their investigation while it was still in the market as a company on Wall Street. The company has plans to offer its shares in Hong Kong but has not yet laid out a timeline for the process.
Didi is being scrutinized within also the United States. In the last month, it announced that the Securities and Exchange Commission is examining it for the failure of its IPO.