Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

China takes steps to ease up on regulatory crackdown as economy slows

Stock Markets Jun 09, 2022 11:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A thermal imaging camera is seen in front of a logo of Ant Group at the headquarters of Ant Group, an affiliate of Alibaba, in Hangzhou, Zhejiang province, China October 29, 2020. Picture taken October 29, 2020. REUTERS/Aly Song
 
BIDU
+0.44%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BABA
-1.82%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Selena Li

HONG KONG (Reuters) - Beijing has given tentative approval for Ant Group to revive its initial public offering (IPO) in Shanghai and Hong Kong, two sources told Reuters on Thursday, the biggest sign yet of a cooling of Beijing's tough stance on the technology sector.

Ant, an affiliate of Chinese e-commerce behemoth Alibaba (NYSE:BABA) Group Holding Ltd, aims to file the preliminary prospectus for the offering as soon as next month, said the sources.

China in recent months has changed its tone and tack towards the regulatory crackdown campaigns it waged against a wide range of industries from technology to property since late 2020, as it seeks to boost an economy hurt by COVID-19 lockdowns.

The shift in messaging has ignited hopes for companies and investors that the worst is over, though jitters remain.

Here is a timeline of key events underscoring the easing of China's regulatory crackdown since the beginning of this year:

Feb. 10: China's cyberspace watchdog said it had held a symposium with Chinese tech giants in January which they said had given the industry a "clearer understanding" of how to pursue future development and confidence amid a new regulatory landscape. March 16: Chinese Vice Premier Liu He, China's economic tsar, urged the rollout of market-friendly policies to support the economy and caution in introducing measures that risked hurting markets, boosting battered shares in China and Hong Kong.

April 11: China's gaming regulator granted publishing licenses to 45 games belonging to the likes of Baidu (NASDAQ:BIDU) and XD Inc's "Party Star," ending a nine-month freeze that had dealt a blow to many of the country's tech companies.

April 29: China's powerful Politburo, in a meeting chaired by Chinese President Xi Jinping, said it will step up policy support for the world's second-largest economy, including its so-called platform economy.

May 15: Chinese financial authorities allowed a further cut in mortgage loan interest rates for some home buyers, in another push to prop up its property market and revive a flagging engine of the world's second-largest economy.

May 16: Authorities asked three financially healthy major private Chinese property developers to issue bonds to help boost market sentiment, two sources with direct knowledge of the matter told Reuters.

May 24: China's financial regulators pledged to keep credit growth stable in the property sector and help home buyers affected by COVID-19 outbreaks to defer their mortgage payments, the central bank said in a statement.

May 17: China's vice-premier, Liu, told a meeting convened by the country's top political consultative body that the government supported the development of the sector and public listings for technology companies. Tech executives who attended the meeting included founders of search engine company Baidu and mobile security software maker Qihoo 360.

June 7: China's gaming regulator granted publishing licenses to 60 games.

June 8: Reuters reported, citing sources, that China's Didi is in talks with state-backed Sinomach Automobile to buy a third of its electric-vehicle unit, signalling the ride-hailer's regulatory troubles are in the rear view mirror as it focuses on growth.

China takes steps to ease up on regulatory crackdown as economy slows
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email