BEIJING, March 18 (TMTPOST)— U.S.-listed Chinese shares posted their best ever week after a top-level meeting of policymakers sent clear signals to boost the economy, including the internet sector.
Source: Visual China
KraneShares CSI China Internet ETF (KWEB), a $4.9 billion ETF with investment dominated by well-known large-cap stocks like Alibaba, JD.com and Baidu, climbed about 8.5% on Friday and logged a gain of nearly 30% for the best ever week since it started trading in 2013. The Nasdaq Golden Dragon China Index, which tracks China-exposed firms listed in the United States, rose 7.5% that day and wrapped the week with a 26.3% surge, the biggest weekly gain since November, 2020.
The stocks surge came as a meeting of the Financial Stability and Development Committee under the State Council, chaired by China"s Vice Premier Liu He on Wednesday, urged authorities to unveil market-friendly policies and caution on tightening policies. The State Council meeting said Beijing will continue to support various kinds of businesses’ overseas listings, and revealed that China’s regulators and U.S. counterparts have made progress in regulation on U.S.-listed Chinese stocks, and are working to create a detailed plan for cooperation. The meeting also sought to address concerns over online platforms as it said the governance of the platform economy shall pursue steady progress through improved plans under principles of market orientation, rule of law and internationalization. It requires authorities to proceed with the rectification of major platforms in a stable manner, facilitate stable and healthy development of the platform economy, and improve their global competitiveness.
Several regulators moved on the heels of the meeting, pledging thorough implementation of the committee"s decisions. Among them, the China Securities Regulatory Commission (CSRC), the top securities regulator, said the government will promptly promote the implementation of new regulations on the supervision of overseas listing of enterprises, support all kinds of qualified enterprises to list overseas, and maintain smooth overseas listing channels.
One of a key signals the State Council meeting on Wednesday released is that rectification of leading platform operators has to be pressed forward in a steady and safe way, while it will complete as soon as possible following the existing working plan, according to a commentary of Economic Daily, a political party newspaper directly under the Central Committee of the Chinese Communist Party, published on Friday. The signal suggests relevant departments have already had a comprehensive plan for platform economy’s rectification, which aims to promote a steady and sound development of this sector and improve international competitiveness, the article noted.
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