Chinese Tech Stocks Surge as Xi Meets Business Leaders

Chinese and Hong Kong stocks surged on Tuesday, primarily driven by a rally in technology shares following a significant meeting between President Xi Jinping and major business leaders, including Jack Ma of Alibaba. The Hang Seng Tech Index rose 3%, reaching a three-year high, with Alibaba and Tencent seeing gains of 4.3% and 3.4%, respectively. Analysts suggest that Xi's encouragement of innovation and confidence in the private sector may signal an easing of the regulatory crackdown that has affected the tech industry. Additionally, the broader Hang Seng Index experienced a 2% increase, reflecting the overall positive investor sentiment. Onshore markets also saw gains, with major indices like the CSI300 and Shanghai Composite reaching their highest levels of the year. This rally is further supported by advancements in artificial intelligence and a growing optimism towards the Chinese economic model.