- 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 (OTC:TCEHY) and Alibaba Group Holding Limited (NYSE: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 (NASDAQ:BIDU) founder Robin Li and NetEase, Inc (NASDAQ: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.
