Why DiDi Global Stock Rallied Nearly 14% on Thursday

Shares of China's ride-hailing service DiDi Global (NYSE: DIDI) ended today's session up 13.9% following reports that the same Chinese regulators investigating the company since July recently suggested the company consider a Hong Kong listing of its shares.

The Wall Street Journal posted the article, intimating representatives of China's Cyberspace Administration brought up the prospect of issuing shares in Hong Kong with DiDi executives.

If true, the move largely reverses the rhetoric from just three months ago, when China's regulators raided Didi's corporate offices to kick off an investigation of the company, seemingly in retaliation for moving forward with a U.S. listing of its stock in June. While the investigation was superficially linked to concerns regarding the protection of digital consumer data, such regulatory investigations can create sweeping, difficult outcomes under single-party control. The potential penalty being considered by China's Cyberspace Administration for DiDi were at one point being described as unprecedented. The scope of any penalty appears to have been dialed back in the meantime.

Source Fool.com