Didi has been awaiting authorities' approval to resume new user registrations and downloads of its 25 banned apps in China as a key step to resume normal business since its regulatory troubles started in mid-2021.

The lifting of the new user ban and app resumption for its flagship ride-hailing services and other business could take place before the Lunar New Year which begins on Jan. 22, said four of the sources.

The one-week-long holiday period in China would help Didi start to attract new clients for the business and work towards bringing it back to normal, added two of the sources.

A lifting of the ban on Didi apps would come as Chinese policymakers seek to restore private sector confidence and count on the technology industry to help spur economic activity that has been ravaged by the COVID-19 pandemic.

A restoration of apps would also signal Didi's completion of its nearly two-year long regulatory-driven revamp, and will come after the powerful cyber watchdog Cyberspace Administration of China (CAC) imposed in July a $1.2 billion fine on the company.

Didi did not immediately respond to a Reuters request for comment.

CAC and the State Council Information Office, which handles media queries for the government, did not immediately respond to Reuters requests for comment.

(Reporting by Julie Zhu, Kevin Huang and Xu Jing; Editing by Sumeet Chatterjee and Muralikumar Anantharaman)

By Julie Zhu, Kevin Huang and Xu Jing