U.S.-listed shares of Chinese technology companies rose, driven by expectations of China easing its regulatory crackdown on the country’s internet companies, while falling COVID-19 cases raised hopes of a boost to economic activity.
Chinese Vice-Premier Liu He is scheduled to address tech executives at a meeting convened by the country’s top political consultative body on Tuesday to promote the development of its digital economy, according to sources.
Investors were on the lookout for remarks made by Liu and others on the extent to which Chinese authorities will ease a regulatory crackdown on the tech sector.
American despository receipts of companies such as search engine Baidu Inc , Pinduoduo Inc, Alibaba Group and ride-hailing firm Didi Global rose between 4% and 10% in trading before the bell.
The conversations between China’s ruling body and technology executives does seem to bring about expectations that the tech crackdown might be coming to an end, said Danni Hewson, an analyst at AJ Bell.
“When you look at some of the valuations now, they look good by comparison to some of the US tech stocks and there is a massive marketplace for them,” Hewson added.
Shanghai reported no new COVID-19 cases outside of quarantine zones and the nation’s caseload fell as the city plans to resume outdoor activities in stages.
The country’s state planner also said it would strengthen support for manufacturers, service sector and small firms as COVID-19 lockdowns hit economic activity.
Chinese technology companies have been hit since the country cracked down on the sector in late 2020.
(Reporting by Akash Sriram and Bansari Mayur Kamdar in Bengaluru; Editing by Maju Samuel)