In the wake of President Xi Jinping’s meeting with leading entrepreneurs, Chinese stocks in Hong Kong experienced a lift, reflecting Beijing’s favorable stance towards the private sector.
The Hang Seng China Enterprises Index on Tuesday advanced by up to 1% in early trading, primarily driven by gains in technology shares such as Alibaba Group Holding Ltd. and Xiaomi Corp., while the onshore CSI 300 Index registered a decline.
As per an official readout released after local markets closed on Monday, Xi pledged to eliminate unjust penalties on private firms and encouraged entrepreneurs to uphold their competitive edge.
This supportive gesture may herald a turnaround for private companies, previously strained by regulatory pressures as Xi consolidated state oversight. The developments appear poised to bolster China’s impressive stock performance this year, fueled by enthusiasm surrounding DeepSeek’s advancements in artificial intelligence.
Analysts from Citigroup Inc. stated that the convening of such a meeting underscores the crucial role of technological innovation and private sector contributions to China’s economic expansion. The focus on the tech and internet sectors is expected to provide valuation support, signaling a promising outlook for China’s internet companies.
This year’s technological stock surge has led to optimistic predictions from Wall Street experts at Goldman Sachs Group Inc., Morgan Stanley, and JPMorgan Chase & Co., who anticipate that AI advancements will enhance corporate profits and lead to a reassessment of the market.
