Sept 3 (Reuters) - Beijing city is considering taking Didi Global (DIDI.N) under state control and has proposed that government-run firms invest in the Chinese ride-hailing company, Bloomberg News reported.
The central thrust of the city government's proposal is to regain control over one of its largest corporations, and particularly the data it holds, Friday's Bloomberg report said.
Chinese authorities have stepped up their regulation of technology firms in the past year to improve market competition, data handling and their treatment of employees.
Under the preliminary proposal, some Beijing-based companies including Shouqi Group, part of the state-owned Beijing Tourism Group, would acquire a stake in Didi, Bloomberg reported, citing unidentified people familiar with the matter.
Other scenarios being considered include the consortium taking a nominal share, accompanied by a so-called "golden share" with veto power and a board seat, it added.
Didi, Beijing's city government, Beijing Tourism Group and Shouqi Group did not immediately respond to requests for comment.
Shares in Didi rose 1.7% to $8.96 in New York in early-afternoon trading. Some investors welcomed the news, arguing it could remove the overhang of further regulatory uncertainty on Didi's stock.
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In July, China barred for-profit tutoring in core school subjects, stepping up...
Read Full Story: https://www.reuters.com/technology/beijing-city-looking-take-didi-under-state-control-bloomberg-news-2021-09-03/
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