Alibaba stock price soars as Beijing signals pause in tech crackdown
- Alibaba and JD.com surged on Friday as Chinese officials said they would support the economy.
- China’s Politburo has signaled support for the tech sector, which has faced a crackdown from authorities.
- China faces 5.5% growth in 2022, the slowest expansion in three decades.
U.S.-listed shares of Alibaba and other Chinese tech stocks jumped on Friday after the Chinese government suggested it would reverse its crackdown on the sector and pledged to continue stimulus efforts as the country is facing its slowest growth in three decades.
E-commerce giant Alibaba climbed 12% to $101.56 in premarket trading, topping $100 for the first time since April 12. Rival JD.com gained 14% to trade above $65 for the first time since mid-March.
The Politburo, the Chinese Communist Party’s decision-making committee, reportedly said it would “introduce specific measures” to support the
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the DiDi platform jumped 18% and the online search and marketing services company Baidu gained 8%.
The Politburo said it aimed to support the economy which has been hit by a new wave of COVID-19 infections and subsequent lockdowns for millions of residents.
“We should waste no time in planning more policy tools and strengthening the force of adjustment in due course,” the Politburo reportedly said on Friday after a quarterly meeting to discuss the development of the situation. the world’s second largest economy.
China has set a growth target of 5.5% for 2022, the slowest rate of expansion since 1991.
Chinese officials were planning to hold a symposium with major tech companies, raising hopes that the government, led by President Xi Jinping, will back down from its sweeping crackdown on the sector, the South China Morning Post reported on Friday, citing two sources. anonymous.