Chinese tech shares surge on signs of state support

Shares of major Chinese tech companies soared Friday after a meeting in which top officials called for the "healthy development" of the sector, fuelling hope among investors that a damaging state crackdown may ease.

Beijing has embarked on a sweeping clampdown over the past year that has clipped the wings of its biggest internet firms.

But in a meeting of the government's decision-making body on Friday, officials concluded it was "necessary to promote the healthy development of the platform economy" and "complete its rectification", according to the official Xinhua news agency.

In the Politburo meeting, chaired by President Xi Jinping, officials also said there was a need to "respond to market concerns in a timely manner", Xinhua reported. Shares of Chinese tech firms rocketed in Hong Kong, with JD.com and Alibaba rising around 15 per cent, while Tencent shares jumped 11 per cent.

"Stocks are oversold and there is speculation of the potential end to the crackdown on these companies," said Justin Tang, head of research at United First Partners, told Bloomberg News.

China's top officials also pledged efforts to meet economic targets -- a signal that authorities could increase stimulus, with economic activity battered by harsh Covid-19 controls to try and stamp out outbreaks in key cities.

On Friday, leaders also stressed the need to "effectively manage and control key risks," and push for the stable and healthy development of the real estate market, Xinhua said.

Beijing has been working to boost confidence in the economy and reassure markets in a series of recent statements.

But analysts caution that China's strict anti-virus measures -- which have snarled travel and supply chains -- could still hamper the announced support measures.