Chinese Tech Economy : overview 2022

 Alibaba Group Holding Limited. BABA 6.80% and other Chinese technology stocks surged by double-digit percents, leading to a wider market rally on investor hope that the government would do more for the sector.

Chinese Technology Economy

Friday's surge helped Chinese shares recover some of their losses. The yuan also gained some ground against USD after sharply selling in recent sessions.

Stabilize consumption in China

According to state-run Xinhua News , China's Politburo stated Friday that the government should implement policies to support the economy and stabilize consumption, as well as invest effectively in support of growth. Xinhua reported that the calls were made during a meeting held Friday by President Xi Jinping.

Worldwide conflicts

While the Covid-19 epidemics and Russia-Ukraine conflict have exacerbated the difficulties facing China's economy, policy makers stated that they would increase support and work to achieve this year's growth target. Many analysts and economists have stated that China's goal of 5.5% gross domestic products growth will be difficult to reach. This is despite the fact that many cities are under lockdown because of China's zero-Covid-19 policies.

https://msnquotes.com/2022/04/10/chinese-artists-that-support-ukraine/

A member of the Chinese Business Club in tech said that the government should end its efforts to fix issues at platform companies and implement specific measures to encourage the "healthy growth of the platform economy."

This pre-markets primer is packed with information, trends, and ideas. Plus, up-to-the-minute market data.

Expert in China overviews

Larry Hu, an economist with Macquarie, an international bank, stated that the language regarding tech was more accommodating than at a December meeting. "Today's Politburo meeting wishes to assure the market, which began at the end of 2020," Mr. Hu stated in a Friday note.

China is poised to put an end to its long-running campaignagainst technology companies. The top internet regulator will meet next week with China's tech giants, according to people familiar with the matter.

Chinese Cosmetics industry is suffering from these tech giants 

--https://forbas.co.uk/distribution-is-the-key-to-success-with-cosmetics-in-china/

Hong Kong's Hang Seng Index rose 4% while the Hang Seng Tech Index soared 10% with shares in tech companies like Alibaba, Tencent Holdings Ltd. TCEHY 8.81%, JD.com Inc. JD 6.666% and Meituan3690 15.51% all rising more than 10%. The CSI 300 and Shanghai Composite indexes rose by 2.4% in mainland China.

Chinese economy suffers

These moves end a turbulent period in Chinese markets. Onshore stocks suffered their worst one day selloff in over two years earlier this week, while the yuan plummeted to levels that were last seen in late 2020. Despite Friday's rebound the CSI 300 finished the month 4.9% lower while the Hang Seng ended April 4.1% below.

Louis Lau, director for investments at Brandes Investment Partners, San Diego, stated that although stimulus has been measured thus far, he believes there is still room to support growth if policymakers are willing to do so. Chinese equities have a lot of potential to recover if investors gain confidence and real economic fundamentals improve.

Prashant Bhayani (chief investment officer for Asia at BNP Paribas Wealth Management) made a comparison to March. It was then that Mr. Xi's economic czar Liu He triggered a ferocious rally.

According to Mr. Bhayani, this time the economic impact of Covid-19 made it more urgent and there was more chance for more stimulus. He said that there are more stars aligning now than in March.

The yuan rose in currency markets both onshore and offshore. By early evening Hong Kong time, the offshore yuan had risen 0.6% to 6.6193 dollars per dollar. It is still significantly lower than it was at the end March, when it was trading at 6.35 dollars.

Lockdown and small businesses in China

Xinhua reported that policy makers also urged government agencies support small businesses and industries affected by the pandemic and to stabilize consumer prices. They demanded that China take action to ensure smooth operations in key supply chains, domestic logistics, and companies critical to China's fight against Covid-19.

https://jpostnews.com/2022/04/10/how-to-start-and-run-a-business-in-china-during-the-lockdown/

Two people familiar with the matter said that reports suggest that China's top leaders would host a symposium next month. The event will include representatives from a variety of internet companies. Xi is expected to chair it. One source claimed that Meituan , a food delivery company, was invited.

China's Smartphone Market drops

China's Smartphone Market fell 14.1% in 1Q22 due to soft demand and lack of product upgrades, IDC reports

The IDC Worldwide Quarterly Smartphone Tracker shows that 74.2 million smartphones were shipped in China in 1Q22. This is 14.1% less than the year-on-year average (YoY). This decline was due to a low comparison year, but also because of continued soft demand from the lack of product updates and the increase in COVID-19 cases. If the market continues to lack a fresh stimulus, it runs the risk of shipping less 300 million smartphones in 2022.