Didi jumps 14% a week amid the report the Chinese government has taken on

Didi shares are on the verge of double-digit gains this week amid a Bloomberg News report that Beijing is looking at a plan to bring the worrying state-controlled travel giant by acquiring a stake through companies governmental.

The state-run Beijing Tourism Group and other city-based companies would invest in Didi under the early-stage proposal pending government approval, Bloomberg News reported, citing people familiar with the matter. The group could also take the so-called “golden part” with veto power and a seat on the board to gain control of Didi, according to the report.

Didi, which went public on the New York Stock Exchange in late June, rose more than 6% on Friday and rose 14%. However, the shares have lost almost half of their value since their IPO, amid regulatory pressure.

Didi did not immediately respond to CNBC’s request for comment. It is unclear what impact state control would have on the ADR structure, which is what is listed on the NYSE instead of the normal equity.

Didi is currently undergoing a cybersecurity review after the China Cyber ​​Administration alleged that Didi had illegally collected user data. The giant that traveled was forced to stop registering new users and its app was also removed from Chinese app stores.

Last week, the Wall Street Journal reported that Didi was looking at withdrawal plans and compensating investors for losses suffered since its IPO in the United States. Didi later denied the report.

Investors could also buy the deposit recently after getting more clarity on Beijing’s measures. Earlier this week, China’s cyber regulator set two main conditions for companies wanting to go public, including compliance with national laws and regulations and national network security.

The stock market rose 10% last week.

Amid the crackdown on Beijing, the Securities and Exchange Commission is also stepping up oversight of Chinese companies that want to be listed on U.S. stock exchanges. The agency said it will require additional disclosures about the structure of the company and any risks arising from future actions by the Chinese government.

– Click here to read the original Bloomberg News history.