Chinese internet platform companies experienced a surge in shares in Hong Kong on Thursday, following a positive signal from Beijing supporting the sector.
Meituan, a leading food delivery company, saw a significant increase of up to 6.4%, ultimately closing 5.7% higher. Bilibili Inc., a popular video streaming platform, also experienced a jump of 8.1%, while short-video app operator Kuaishou Technology saw a rise of 6.7%. Meanwhile, the e-commerce giant Alibaba Group added 2.6%.
This rally was prompted by a meeting between Chinese Premier Li Qiang and senior executives from the country’s top technology companies, including Meituan and Alibaba, on Wednesday. During the meeting, Li stressed the importance of the sector in job creation and fostering innovation.
Industry analysts view this meeting as an indication that Beijing’s crackdown on the tech sector has likely come to an end, with stabilized regulations for the industry.
“The increasing clarity on government policies and regulatory frameworks for the internet sector should boost investor sentiment,” noted analysts at Citic Securities in a post-meeting report.