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Chinese Tech Stocks, DiDi Rise on Reported Union Plans

Didi and workers are reportedly getting unions, a big milestone for China's tech sector.

U.S.-listed shares of Chinese stocks  (JD) - Get Free Report and DiDi Global  (DIDI) - Get Free Report rose on Wednesday as the e-commerce firm and the ride hailing company reportedly set up company-wide unions for their respective workers., which established a trade union this week, told Reuters that some of its local units had created unions in past years and the new union - set up at the group level - aimed to coordinate planning and resources.

Meanwhile, Didi's union, announced last month, will be initially managed by employees at its Beijing headquarters, Reuters reported.

Shares of on Wednesday rose 2.8% to $80.78, and DiDi traded 10% higher at $9.04 at last check .

DiDi's union will be guided by the government-backed All China Federation of Trade Unions. In the past, DiDi has been criticized by Chinese state media for not paying its drivers fairly.

In April, the company said it would set up a drivers committee to improve income stability and transparency over wages, the Reuters report cited.

The move comes as Beijing continues its regulatory onslaught with new rules for the tech sector, ostensibly to combat antitrust behavior.

Chinese Tech Shares Drop on New Rules to Prevent Data, Consumer Abuse

In his Real Money column last month, TheStreet founder Jim Cramer addressed the crackdown and cautioned that, "if you are rich, you are a target and that means they will strip you of your wealth, and if the collateral damages are losses by U.S. investors, so be it."