Xi Jinping Meeting with Tech Leaders Boosts Chinese Stocks and Marks Possible End of Regulatory Crackdown
- 18/02/2025 - 07h40
- Updated 1 year ago
- 2 min read
Written by: Equipe IN
Chinese technology stocks continued to advance this Tuesday, amid optimism that President Xi Jinping's rare meeting with the country's tech entrepreneurs heralds a regulatory turnaround after years of industry-wide crackdown.
The Hang Seng Tech Index rose 2.5%, closing at a new three-year high and extending gains over the past month to over 30%. Hong Kong's Hang Seng Index rose 1.59%.
Alibaba rose 3.3%, hitting a nearly three-year high, after state media CCTV showed Xi and company founder Jack Ma shaking hands at Monday's meeting.
Tencent jumped 2%, hitting its highest since 2021, and Xiaomi rose over 7%, also to a record level.
Their executives were among the Chinese tech leaders at the symposium, which was seen as a sign that private companies could be treated favorably and that the crackdown on tech giants was over.
"We believe the symposium marks the end of the crackdown, potentially removing one of the most enduring constraints on the sector's performance," UBS Global Wealth Management analysts said in a note.
Meanwhile, onshore markets closed lower as investors took profits after earlier gains in the session.
At the close, the Shanghai Composite fell 0.93%, while the CSI300, which gathers the largest companies listed in Shanghai and Shenzhen, fell 0.88%.
Asian Index Performance
- In TOKYO, the Nikkei index advanced 0.25% to 39,270 points.
- In HONG KONG, the HANG SENG index rose 1.59% to 22,976 points.
- In SHANGHAI, the SSEC index fell 0.93% to 3,324 points.
- The CSI300 index, which gathers the largest companies listed in SHANGHAI and SHENZHEN, fell 0.88% to 3,912 points.
- In SEOUL, the KOSPI index gained 0.63% to 2,626 points.
- In TAIWAN, the TAIEX index rose 0.68% to 23,666 points.
- In SINGAPORE, the STRAITS TIMES index gained 0.53% to 3,925 points.
- In SYDNEY, the S&P/ASX 200 fell 0.66% to 8,481 points.
(With Reuters)
