Chinese stocks in Hong Kong saw modest gains on Tuesday following a meeting between President Xi Jinping and leading entrepreneurs, signaling Beijing’s renewed support for the private sector. The Hang Seng China Enterprises Index rose by up to 1%, with technology giants such as Alibaba Group Holding Ltd. and Xiaomi Corp. driving the rally. Meanwhile, the CSI 300 Index, an onshore benchmark, experienced a slight dip.
During the meeting, Xi vowed to eliminate unjust fines on private companies and encouraged entrepreneurs to maintain their competitive drive, according to an official statement released after markets closed on Monday. High-profile attendees included Alibaba co-founder Jack Ma and DeepSeek founder Liang Wenfeng.
This show of backing from the Chinese government marks a potential shift in the trajectory of private-sector firms, which have faced years of regulatory pressure as Xi pushed for increased state control. Analysts see this meeting as a catalyst for further growth in China’s stock market, which has already surged this year, fueled by excitement over DeepSeek’s advancements in artificial intelligence (AI).
Citigroup analysts, including Alicia Yap, suggested that the focus on innovation and the vital role of private enterprises in China’s economic development underlines the importance of the tech sector. “The emphasis on internet and tech innovation is likely to support valuation multiples for China’s internet companies,” they wrote in a note.
This year’s surge in technology stocks has caught the attention of Wall Street analysts, with firms such as Goldman Sachs, Morgan Stanley, and JPMorgan Chase expressing optimism about the potential of AI to boost corporate earnings and drive a market revaluation.
Related topics:
Amazon’s AI Gamble Faces Scrutiny Amid Mixed Earnings and Investor Concerns
U.S. Stocks Slide Amid Disappointing Jobs Data and Consumer Sentiment Decline
