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China’s first US$1 trillion tech firm? Beijing’s top leaders offer fresh backing to country’s Big Tech sector amid uneven economic recovery
- This week’s Politburo meeting endorsed the ‘standardised, healthy and sustainable development’ of China’s internet platform operators
- Hong Kong’s Hang Seng Tech Index surged 6 per cent on Tuesday in response to the pro-growth message of China’s highest policymaking body
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Tracy Quin Shanghai
China’s top leaders pledged fresh support to the country’s Big Tech sector in Monday’s Politburo meeting chaired by President Xi Jinping, reinforcing efforts to reverse the government’s previous regulatory crackdown that kneecapped the nation’s influential and best-performing technology companies to thwart “the irrational expansion of capital”.
The Chinese Communist Party’s seven-member Politburo Standing Committee, the country’s highest policymaking body, said the nation will “promote the standardised, healthy and sustainable development of platform enterprises” – referring to internet firms such as South China Morning Post owner Alibaba Group Holding and Tencent Holdings – but did not provide details, according to the official readout that was released after the meeting.
The Politburo’s pro-growth message, which followed Beijing’s announcement last week of a 31-point action plan to support the country’s private sector, boosted investor sentiment, with the Hang Seng Tech Index – representing the 30 largest technology companies listed in Hong Kong – surging 6 per cent on Tuesday, with Alibaba up 6.3 per cent, Tencent up 6.2 per cent and Meituan gaining 7.8 per cent.
Its strong endorsement underscores Beijing’s resolve to enable Big Tech companies to resume their growth trajectory and help boost the country’s post-pandemic economic recovery, which has so far been uneven.
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Chinese President Xi Jinping unveils new line-up of country's top decision-making body
Chinese President Xi Jinping unveils new line-up of country's top decision-making body
Earlier this month, the National Development and Reform Commission, the country’s top economic planner, endorsed the investment projects of 10 leading internet platform companies, which Beijing see as essential to fuelling growth and creating jobs.
China should set a number of objectives to promote the development of the country’s private sector, which includes Big Tech firms, according to Chinese venture capitalist Allen Zhu Xiaohu, a managing director at GSR Ventures – one of the world’s most successful early-stage venture firms, with over US$3.7 billion under management – in his WeChat post that was cited by Chinese media reports last week.
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