China and Hong Kong’s technology actions registered new maxims after President Xi Jinping meets with industry leaders, including Jack Ma, founder of Alibaba. The movement signals a rapprochement between the Chinese government and large technology companies, boosting market confidence and strengthening the sector.
The appreciation of 4.3%in Alibaba shares, added to the significant advance of Tencent and Xiaomi’s papers, led the Hang Seng Tech index to an increase of 3%, consolidating a monthly advance over 30%. This performance reflects a positive reassessment of China’s economic perspectives, fueled by signs of regulatory flexibility. Analysts at UBS Global Wealth Management points out that Xi Jinping’s gesture may indicate the end of regulatory repression to the technology sector, paving the way for sustained growth and new investments.
The impact of the meeting went beyond the technological sector. The Hang Seng Index has risen more than 2%, reaching its highest level since October 2024, suggesting a recovery of investors’ feeling. In a broader context, the appreciation of CSI300 and Shanghai Composite indices reinforces the Chinese government’s strategy to reposition the country as a global leader in innovation and technology. This shift can reshape the dynamics of international markets, increasing China’s competitiveness and encouraging strategic partnerships with other economies.