Alibaba, Tencent, and Meituan were praised by China's economic planning agency NDRC (National Development and Reform Commission).
The organization said that the three giant tech firms greatly contributed to the technological progress, as well as the economic growth of the country.
Alibaba, Tencent, Meituan Praised by China's NDRC!
According to The South China Morning Post, NDRC praised Tencent Holdings, Meituan, and Alibaba Group Holding because they bolster China's economy.
On Wednesday, July 12, the Hong Kong shares of Alibaba reached more than $11 (HK$89.85), which is a 1.24% increase.
Meanwhile, Tencent closed at over $43 (HK$340), which is over a 1.86% increase. Meituan's shares also spiked, reaching more than $16 (HK$127.3); a 4.34% increase.
These are great achievements since Alibaba, Meituan, and Tencent have been under intense regulatory scrutiny for the past two years.
Their Contributions to China's Economy
On July 12, NDRC highlighted the contributions of the three giant tech firms to China's economic growth:
- Tencent: Helped the development of service robots, artificial intelligence, and chipsets; invested in Enflame Technology, which is an AI chip start-up focusing on semiconductors.
- Alibaba: Helped to transform and innovate China's service and agriculture industries.
- Meituan: Helped improve China's industrial robotics and chipsets. Specifically, Meituan invested in Rong Semiconductor; a company that focuses on developing 12-inch wafers and provides wafer-level packaging and testing services.
"Not only gained substantial returns through investments but also boosted high-level scientific and technological self-reliance efforts ... and contributed to the promotion of high-quality development," said NDRC.
China's Tech Crackdown Nears Its End
Channel News Asia reported the rising shares of Alibaba, Tencent, and Meituan.
"Their share prices have strongly rebounded today mainly driven by the expectation that regulatory pressure from mainland government will ease," explained Kingston Securities Executive Director Dickie Wong.
With the latest achievements made by Tencent, Alibaba, and Meituan, industry experts believe that it's a sign that the crackdown in the name of data security and antitrust will soon be over.
However, this will still depend on the problems that the Chinese government and tech companies will encounter in the near future.
If you want to learn more details about how Tencent, Alibaba, and Meituan are improving the economy of China, you can click here.
