Didi stock climbed Friday as Bloomberg reported the firm may give up control of data to placateChinese regulators.- The firm considered various proposals, including handing over data management to a third party, Bloomberg reported.
- Didi shares were up around 6% before the opening bell on Friday.
Shares of Didi Global climbed Friday as reports circulated that the ride-hailing giant is mulling giving up its control of data to placate Chinese regulators that have cracked down on the firm following its US IPO.
The ride-hailing firm, Bloomberg first reported, has suggested various proposals to regulators, including handing over its data management to a third party, which authorities were said to have have preferred. Didi's data is crucial to its operations as the company coordinates between some 400 million riders and drivers daily.
Didi shares were up as much as 15% during Friday's pre-market trading, paring gains to 6% shortly before the opening bell.
Deliberations are at a preliminary phase and any outcome is still possibly months away, sources told Bloomberg.
Reports have swirled in recent weeks that China is considering serious penalties for Didi, from suspending certain operations to introducing a state-owned investor, Bloomberg reported. Among the harsher measures would be to force the company to delist or withdraw its US shares.
Didi's New York Stock Exchange debut was the second-largest among Chinese companies after e-commerce giant Alibaba's IPO in 2014.
While Didi shares soared as much as 28% during its public trading debut, the besieged ride-hailing company's stock has since lost more than half its value.
Not long ago, the Chinese firm was eyeing a $70 billion valuation, but roughly over a month after its debut, the company is now worth less than $40 billion.