Shares of Chinese ride-sharing company Didi Global Inc. (NYS:DIDI) jumped 4.5% in premarket trade Friday, after a report that the city of Beijing is considering taking over the company, which is the subject of a cybersecurity investigation. The Beijing government has proposed making an investment in Didi, Bloomberg News reported, citing unnamed people familiar with the matter. It is unclear what size stake it might take and Didi did not respond to a request for comment. Didi went public in the U.S. in June, and immediately faced a crackdown from the Chinese government's cyberspace administration, which launched an investigation of its offices. The move is part of a wider Chinese government clamp down on its big tech giants, that seeks to dissuade them from listing on foreign exchanges. Other sectors, including education and videogame makers, have been swept up in the regulatory crackdown. Didi shares have fallen 12.6% in the month to date, while the S&P 500 (S&P:SPX) has gained 2.6%.
Sept. 3, 2021, 6:59 a.m. EDT