Alibaba, Other Chinese Stocks Pop As China's Top Economic Official Expresses Support For Digital Platform Ahead Of 2022 Election

  • China's top economic official offered an unusually public show of support for digital platform companies hinting toward possible ease in the ongoing crackdown, Bloomberg reports.
  • The latest comments may inject much-needed confidence into the capital markets. Tencent Holding Ltd TCEHY and Alibaba Group Holding Limited BABA combined lost over $1 trillion in market value post regulatory crackdown in late 2020.
  • Also Read: Here's Why JPMorgan Upgraded Alibaba, Other Chinese Stocks Months After Calling Them 'Uninvestable'
  • The government expressed support for the development of digital economy companies and their public listings, Vice Premier Liu He, President Xi Jinping's most senior economic aide, said at a meeting with representatives of tech companies. 
  • Reports quoted Liu saying the relationship between government and markets "should be handled well." 
  • Baidu, Inc BIDU founder Robin Li and NetEase, Inc NTES chief William Ding were at the forum.
  • In a year plagued by geopolitical uncertainty and pandemic resurgence, Beijing has made stability its core priority, particularly as its top officials prepare for a critical leadership transition toward the end of 2022.
  • Price Action: BABA shares traded higher by 6% at $91.60 on the last check Tuesday.

Posted In: GovernmentNewsRegulationsTechMediaBriefs