China Signals Easing of Platform Company Regulations... Shanghai and Shenzhen Indexes Rise Simultaneously

Xi Jinping, "Effective Adjustment of Economic and Social Development through Epidemic Control"
Policy Improvements Based on Local Conditions While Upholding Housing Purpose, Not Real Estate Speculation

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese leadership analyzed and studied the economic situation amid the resurgence of COVID-19 at the Communist Party Central Political Bureau meeting, according to state-run Xinhua News Agency on the 29th.

[Image source=Yonhap News]

At the meeting, President Xi Jinping stated that the Chinese economy is facing challenges due to the resurgence of COVID-19 and domestic and international influences such as the Russia-Ukraine war.

President Xi emphasized, "We must effectively coordinate economic and social development through epidemic prevention and control."

The Chinese leadership diagnosed that uncertainties regarding the Chinese economy are increasing due to rising domestic and international risks, and agreed that the impact of the epidemic on economic and social development must be minimized through epidemic prevention and control.

They also stated that various policy tools, including strengthening macro policies, should be utilized to achieve this year's economic growth targets.

Additionally, they stressed the need to maintain social stability through comprehensive strengthening of infrastructure investment, reinforcing a consumption-driven economy, securing energy resources supply, and stabilizing prices.

In particular, the meeting also mentioned large platform companies.

The Chinese leadership said that the healthy development of the platform economy must be promoted and that specific measures should be introduced to support the sound growth of platform companies. These specific measures are reported to include normalization of management and supervision of internet-related companies. Large Chinese platform companies such as Alibaba have been under strong pressure from Chinese authorities since last year.

The meeting also addressed real estate. The Chinese leadership reiterated that housing is for living, not speculation, and stated the need to improve real estate policies according to regional conditions to promote stable and healthy development of the real estate market.

Chinese media Pengpai reported that as the contents of the Central Political Bureau meeting became known, some internet and real estate-related stocks hit their upper limits, affecting the stock market. It also reported that some securities stocks such as Dongfang Caifu Securities, Hualin Securities, and Taipingyang Securities surged sharply.

Bloomberg interpreted the results of the Chinese Communist Party Political Bureau meeting as a strong determination by the Chinese leadership, struggling with the resurgence of COVID-19, to stimulate the economy. It also reported that President Xi promised support for economic revitalization, including ordering the strengthening of infrastructure investment at the 11th meeting of the Central Financial and Economic Affairs Commission held on the 26th.

Meanwhile, as of 2:45 p.m. on the same day, the Shanghai Composite Index was at 3,043.19, up 2.28% from the previous day; the Hang Seng Index rose 3.18% to 20,921.03; and the Shenzhen Composite Index increased 3.59% to 11,010.29.

This content was produced with the assistance of AI translation services.