Alibaba Group Holding and Tencent Holdings, China¡¯s largest tech companies, have gained $66 billion in market value since May¡¯s end, propelled by expectations of a gradual return to pre-crackdown growth and a litany of official promises to unshackle the private sector. Yet some investors warn the celebration may be premature.
For the first time since 2021, China¡¯s technology leaders head into an earnings season with what appears to be the wind at their backs. They¡¯re set to report their strongest growth rates in over a year.
Driven by a need to rejuvenate the word¡¯s No. 2 economy, Xi Jinping has in recent months led party cadres and state media in proclaiming Beijing¡¯s support for a trillion-dollar sector wracked by two years of unpredictable diktats. And in July, Beijing signaled it¡¯s ready to unfetter the sector when it wrapped up a probe into Jack Ma-backed Ant Group.
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