According to information provided by Bloomberg, Chinese authorities are softening their stance, seeking to restore investor confidence and stimulate economic growth. This is manifested in the weakening of some regulatory restrictions and providing companies with greater freedom in innovation and business expansion. This policy shift contributes to the growth of shares of Chinese technology companies and an increase in their market capitalization.
Previously, between 2021 and 2023, Beijing actively tightened control over the technology sector, which was expressed in tightening antitrust laws and introducing new rules for digital platforms. For example, in 2022, amendments were adopted to antitrust laws aimed at limiting the monopolistic activities of large technology companies. However, by the beginning of 2025, it became obvious that excessive pressure on the technology sector could negatively affect the economic growth and innovative potential of the country.
In response to this, the Chinese authorities began to revise their policy, seeking to find a balance between the need for regulation and support for the development of technology companies. This includes both the weakening of some previously introduced restrictions and the introduction of new mechanisms for cooperation between the state and the private sector. Investors have positively received these changes, which has affected the growth of stock quotes of leading Chinese technology companies.
Thus, current trends indicate China's desire to create a more favorable environment for the development of the technology sector, recognizing its key role in ensuring sustainable economic growth and global competitiveness of the country.