Beijing Wants to Take Didi (DIDI) Under State Control, Shares Edge Higher

Shares of Didi Global (NASDAQ: DIDI) are up about 3% in pre-open Friday on reports that Beijing’s municipal government is exploring options to invest in the company.

Bloomberg reports that Shouqi Group, a part of the influential Beijing Tourism Group, wants to invest in the ride-sharing company and ultimately provide state-owned companies with a controlling stake in Didi.

A “golden share” scenario has been considered, under which the state-run firms would have veto power and a board seat. This is similar to the government’s investment in TikTok-owner ByteDance, actually its Chinese unit.

Discussions are still taking place while the government is weighing appropriate penalties for the ride-sharing company. It is still unclear how big a stake Beijing is looking to acquire in the ride-sharing company.

Shares initially soared about 8% before paring back some gains to settle around 3% in the green.

Didi came public in the U.S. in June of this year at $14 per share and shares now trade around $9. They have been as low as $7.16 since coming public.

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