Didi, the Chinese ride hailing giant that has undergone a year of regulatory reform, faces a fine of more than $1 billion from the country's authorities, according to reports.
A request for comment was not immediately responded to. The regulators will allow Didi to list its shares on the Hong Kong Stock Exchange, as well as restoring its app to domestic app stores.
If the move happens, it will end a year of turbulence at Didi, which was once celebrated in China as the rideshare darling.
The fine is small, amounting to 4.7% of Didi's revenues last year, but it can be seen as a win-win in that the authorities show who's in power and Didi gets to gradually head back to business as usual.
The Chinese government launched a data security probe into Didi just days after the company raised $4 billion from its first sale of stock. The regulators said it was illegal to collect user data.
The firm failed to assure Beijing that its data practices were secure before going public in New York, which could involve sharing data with U.S. regulators.
The company had access to sensitive data because it was the largest mobility platform in China with over 500 million active users.
The delisting from the New York Stock Exchange took place in May. As tensions between China and the U.S. heighten, it is turning to Hong Kong, which has attracted a number of Chinese tech giants trading in the U.S.
Dozens of Chinese tech firms have been added to a list of companies that could be delisted if they don't comply with the SEC's auditing requirements.
It's not clear how Didi has fixed its data security framework, but it will offer a good example to other data intensive tech firms. Pony.ai put its plans in the U.S. on hold because of cross-border data challenges, according to a report.
China roundup: What’s going on with China’s data security clampdown?
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