Beijing can take control of Didi. Investors seem to like the idea.

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Beijing is studying an investment in

Didi

this would give state-owned companies control of the controversial Chinese company, according to a report.

Didi has been on the wrong side of regulators since it began trading in New York earlier this summer, with shares falling more than 40% since its initial public offering in June.

The Beijing municipal government has proposed that the Shouqi Group, which is part of the Beijing Tourism Group, and other companies take control of China’s largest application, Bloomberg reported Friday. According to reports, the acquisition of a consortium leading to a “golden stake” with a seat on the board of directors and veto power is also being considered.

Investors don’t seem baffled by the idea.

Shares of U.S. shares of Didi rose 6% on Friday, reversing a fall in shares on Thursday. This week, the Ministry of Transportation of China ordered companies in the vehicle sector to make major changes in terms of competition, data security and work by the end of the year.

Also read: Didi suspends international expansion over privacy issues. Why stocks increase.

Didi has faced broader scrutiny in recent months, with Beijing pressure focused on cybersecurity and the handling of sensitive user data, especially by a U.S.-listed company forced by northern financial regulators -americans.

Didi was at the center of a crackdown by China in July against U.S.-listed technology companies and also saw its application banned on Chinese platforms, restricting its ability to register new users.

Currently, control of Didi falls into the hands of its management team: co-founder Cheng Wei and President Jean Liu, who hold the majority of voting power after the IPO, according to the report. Major minority shareholders include the Japanese investment conglomerate

SoftBank

and his walking companion

Uber,

which was up slightly on Friday.

Didi did not immediately respond to a request for comment.