Xi-Jack Ma chat seen as next catalyst for blistering China rally.
A potential encounter this week between President Xi Jinping and e-commerce icon Jack Ma, coming after a blistering run by tech shares, could be the next catalyst to extend the rally in China’s stocks.
Prominent entrepreneurs including Ma have been invited to meet the nation’s top leaders, people familiar with the matter said last week. The potential show of support for the private sector coincides with the recent surge in equities in Hong Kong, driven by growing capabilities in artificial intelligence.
The Hang Seng China Enterprises Index extended gains on Monday, after reaching its highest level since February 2022 last Friday. The gauge was up as much as 1.7% before trimming its advance. A tech gauge in Hong Kong entered a bull market earlier this month, fueled by Chinese startup DeepSeek’s AI model that’s hailed as a game-changer.
One major driver of the rally is Alibaba Group Holding Ltd., whose Hong Kong-listed shares have surged about 60% since Jan. 13. Tencent Holdings Ltd. is also catching up, with its shares rising as much as 7.8% on Monday after the company said it’s integrating DeepSeek’s artificial intelligence chatbot into WeChat. The stock is up almost 40% from a January low.
Some investors say the rally is overcrowded and stretched, but Xi’s support would be a boost of confidence to the $16 trillion Chinese and Hong Kong stock markets that have enjoyed steady gains since mid-January.
Source: FORTUNE