China to fine ride-hailing giant Didi more than $1 bln

BEIJING

China is preparing to hit ride-hailing giant Didi with a fine of more than $1 billion to wrap up a long-running probe, media reports said, boosting investor hopes that the country’s tech crackdown is winding down.

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

The fine, imposed over Didi’s cybersecurity practices, would amount to more than 4 percent of its $27.3 billion total revenue last year and pave the way for its new share listing in Hong Kong, The Wall Street Journal reported.

Citing unnamed sources familiar with the matter, the Journal said that once the fine is announced, the government will ease its restrictions on Didi’s operations.

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

Didi got into hot water in June last year after it pressed ahead with an IPO in the United States, reportedly against Beijing’s wishes.

Days after it raised $4.4 billion in New York, Chinese authorities launched a cybersecurity probe into the company, sending its shares plunging.