Regulatory 180 As Tech Receives Government Support, Week In Review

Week in Review

• Asian equities had a decent performance week as China’s Politburo meetings, which were moved up to this past Monday and attended by President Xi, appear to be leading up to stronger-than-expected economic support measures.
• The electric vehicle ecosystem was a performance leader this week, alongside the internet sector, as China-based EV maker Xpeng received a $700 million investment from Volkswagen.
• Ant Group was in the news this week with an upcoming ownership restructure, which could lead to a revival of its Hong Kong IPO.
• China Internet stocks have been on a tare over the past two weeks on an unexpected “180” from regulators, who have become increasingly supportive of the “platform economy” in their latest signaling.

Friday’s Key News

Asian equities were mostly higher overnight as Hong Kong outperformed.

China’s CSRC, the securities regulator, has been speaking with securities firms in search of possible measures to shore up investor confidence in China’s stock market. This could include cutting certain transaction costs. This is a great sign and follows directly from the messaging from the Politburo earlier this week.