The government will support the development of digital economy companies and their public listings, vice premier Liu He, who is President Xi Jinping’s most senior economic aide, said after a symposium with the heads of some of the nation’s largest private firms. Baidu Inc. founder Robin Li, Qihoo 360 Technology Co.’s Zhou Hongyi and NetEase Inc. chief William Ding were among the tech luminaries spotted at the forum, according to a video posted online.
Liu’s remarks reported by state media were short on detail but signal further easing of the regulatory risk for China’s technology behemoths including Baidu and Tencent Holdings Ltd, as investors await clues on whether a rout in their shares is near an end. The Hang Seng Tech Index rallied as much as 6% on Tuesday on optimism the meeting would affirm Beijing’s intention to dial back some of its restrictions.
Beijing has made stability its core priority in a year plagued by geopolitical uncertainty and the heavy economic impact of coronavirus outbreaks — particularly as its top officials prepare for a key leadership transition toward the end of 2022 where Xi is expected to ensure a third term as party chief.
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