Good News For Alibaba And Peers As China Regulator Shows Support And Regulatory Crackdown Easing Plans

China's central bank prepared to step up support for private firms to drive the economy while easing a crackdown on tech companies, media quoted Guo Shuqing, Communist party chief of the People's Bank of China.
China's monetary policy in 2023 will focus on expanding demand, especially personal consumption, Reuters reports.
The update reflects fresh vigor and optimism for battered companies ranging from Chinese tech barometer Alibaba Group Holding Limited BABA.
Also Read: Alibaba Founder Jack Ma Appeared In A Short Video With Advice To Rural Teachers
Chinese leaders pledged to ramp up support for the second-largest economy hit hard by 2022's pandemic lockdowns and slowing global demand.
China battled a surge of infections after China reversed strict virus curbs in December.
Guo, who also chaired the China Banking and Insurance Regulatory Commission, proposed a financial guideline blended with fiscal and social policies to drive income for low- and middle-income groups and COVID-hit groups.
Guo talked of precise and forceful prudent monetary policy focused on expanding effective demand and deepening the supply-side structural reforms.
Chinese financial institutions should treat all types of enterprises fairly, he said.
Authorities aim to widen financing channels for private firms, supporting their stock and bond issuance, Guo said.
China proposed to promote the sound development of online platform companies, Guo said, adding rectification of the financial businesses of 14 platform companies.
Since late 2020, Beijing has stepped up control of the country's sprawling fintech giants.
Authorities looked to adopt "normalized regulation" afterward and encourage platform companies to operate compliantly.
Price Action: BABA shares traded higher by 3.64% at $111.27 in the premarket on the last check Monday.
Image by Kurious from Pixabay

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