Many Chinese stocks are rallying today. Among the factors triggering this surge are promises by the ruling Chinese Communist Party leaders to support the country’s economy in general and “platform” companies in particular. The latter companies provide Internet-based services, such as ride-sharing, e-commerce and food delivery.
In morning trading, shares of Chinese platform companies Ali Baba (NYSE:BABA), JD.com (NYSE:J.D.), Baidu (NASDAQ:BIDU), iQiyi,(NASDAQ:IQ) and Pinduo-duo (NASDAQ:PDD) were all jumping.
What’s going on with Chinese stocks
At its meeting today, the Chinese Communist Party’s key committee, called the Politburo, said it would seek to boost the economy by helping small businesses and businesses affected by the government’s recent lockdown measures. against Covid-19. The Politburo also said it would increase the amount the government spends on the country’s infrastructure and seek to strengthen China’s supply chains.
In its comments on tech companies, the committee promised to “complete the special rectification of the platform economy” and implement support measures for the sector. These latest statements were widely taken to mean that Beijing would ease, at least for a brief period, the regulatory pressures it had exerted on Chinese tech companies for many months.
Elsewhere, in a report seen as positive for many Chinese stocks, South China Morning Post said the country’s top officials would host a “symposium” in partnership with a number of top Chinese internet companies, including Alibaba and Tencent (OTCMKTS:TCEHY).
As of the date of publication, Larry Ramer had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.