Xi-Jack Ma Chat Seen as Next Catalyst for Blistering China Rally

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(Bloomberg) – The possible meeting of this week between President XI Jinping and E-Commerce Icon Jack MA, which comes from tingling by tech shares, can be the next catalyst to extend the rally.

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Well-known entrepreneurs, including, were invited to meet with the leading leaders of the nation, the people familiar with the question last week. The possible display of support for the private sector coincides with the recent increase in shares in Hong Kong, which is due to the growing opportunities with artificial intelligence.

Hang Seng China Enterprises Index increased by 1.7% on Monday, and last Friday after reaching its high level since 2022. In Hong Kong, the technological water meter entered the bull market at the beginning of this month, burning on the Chinese LEEPSEEK AI model, which is welcome as a game-exchange.

“Such a high-level approval sends a clear message from the Chinese government, which views the technological sector as a future driver of economic growth,” said Bloomberg Intelligence Analyst Robert Lea.

One main driver of the rally is Alibaba Group Holding Ltd., whose Hong Kong-listed shares have increased by more than 60% since January 13. Tencent Holdings Ltd. After the company said it integrated into the artificial intelligence in Deepseek in the Wechat. The stock is below January almost 40%.

Some investors say that the rally is overcrowded and stretched, but XI’s support would promote trust in 16 trillion dollars in Chinese and Hong Kong stock markets, which have enjoyed a stable profit in mid-January.

“Recent developments are in line with the expectations of short-term trade opportunities in the Chinese stock market, not a signal structural shift,” says NENAL DINIC in Julius Baer Bank, Julius. “However, without earnings, liquidity flow or fresh catalysts, the risk of transformation increases.”

A match with XI and MA may be a key turning point for Alibaba’s initial public proposal for 11th time, which will be the world’s largest IPO, and the beginning of the regulatory propaganda will be the beginning of the regulatory propaganda. In the field that grew up for very large and powerful comfort. It will also send a powerful signal that the China Communist Party has adopted a more auxiliary position on private sector companies.