DiDi Global Inc - ADR (NYSE:DIDI) shares are trading higher after Tencent Holdings Limited raised its stake in DiDi from 6.4% to 7.4%.
Bloomberg cited Brendan Ahern, Chief Investment Officer at Krane Funds Advisors LLC Thursday morning, who said: “The increased stake indicates Tencent’s confidence in DiDi, while providing another indication that China’s Internet regulatory cycle is likely over".
DiDi Global shares were also trading higher Tuesday following news indicating China's state-backed investment funds may be buying local shares to help stem the recent declines.
Bloomberg reported that Chinese state-backed funds intervened in the stock market during Tuesday trading in China. The intervention, Bloomberg says, helped the Benchmark CSI 300 index stage a strong recovery from its biggest intraday drop since August 2021.
Bloomberg noted that Beijing is no stranger to intervening in markets when needed around significant events or dates. The Monday report cited a similar instance where Chinese funds stepped in to stem a market rout during the National People’s Congress in March 2021.
DiDi Global has a 52-week high of $18.01 and a 52-week low of $3.33.
