Investing.com -- Shares of Alibaba Group Holding Limited (NYSE:BABA) climbed 5.75% as investors reacted to news of an upcoming symposium chaired by Chinese President Xi Jinping, which is expected to include Alibaba co-founder Jack Ma among other prominent Chinese business leaders. The event, aimed at bolstering private sector confidence, comes at a time when China's technology firms are navigating through heightened tensions with the United States and a challenging domestic economic environment.
The symposium, reported first by Reuters, is seen as a rare and significant move by Xi to directly engage with the private sector, particularly the tech industry. Scheduled for next week, the event will likely feature discussions on expanding businesses both domestically and internationally, amidst the escalating Sino-U.S. technology war. The participation of Jack Ma, who has largely stayed out of the public eye following regulatory crackdowns on his business empire, is particularly noteworthy and may signal a potential easing of the pressures on China's private sector.
The news has spurred positive sentiment among investors, leading to notable gains in Hong Kong-listed shares of major Chinese tech companies. Xiaomi (OTC:XIACF) Corp. ended the trading session with a record 7% gain, while Tencent Holdings Ltd (F:NNND). also closed 7% higher. Alibaba's own shares followed suit with a 6% uptick.
The planned symposium follows Xi's 2018 meeting with private sector leaders, where he promised tax cuts and equitable access to financial support. This forthcoming meeting is expected to reiterate the government's commitment to the private sector and may help alleviate concerns over the regulatory environment that has recently stifled growth and innovation in the industry.
While the State Council Information Office did not immediately respond to a query about the event, and companies like Alibaba, Tencent, and Xiaomi have not commented, the market movement reflects investor optimism surrounding the symposium's potential to rejuvenate business confidence.
The symposium's occurrence and its potential implications for Chinese tech giants and the broader private sector underscore the delicate balance Beijing seeks to strike between regulatory control and economic vitality in the face of international pressures and internal calls for "common prosperity."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.