Benzinga -
- Alibaba (NYSE:BABA) Group Holding Limited's (NYSE: BABA) home province, Zhejiang's new communist party secretary, visited the e-commerce giant's campus on December 18 as a mark of solidarity for the Chinese technology company.
- Yi Lianhong urged Alibaba to focus on normative and innovative development, SCMP reports.
- Beijing signaled a policy modification on Friday.
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- Yi is the first senior Chinese government official to visit Alibaba since the country placed it under an antitrust investigation two years ago.
- The visit came after China's central economic working conference, chaired by President Xi Jinping, stated that the country's Big Tech platform enterprises, like Alibaba, would be encouraged to fully display their capabilities in the growth, job creation, and international competition.
- At Alibaba, Yi reiterated the statement and urged to adhere to development and regulation, unleash innovation dynamics, and enhance core competitiveness.
- Yi also talked about regulated capital investment and expansion.
- Last Friday, China's top leadership hinted at the end of Beijing's regulatory rampage, with a focus on internet platforms like Alibaba to revive the slowing Chinese economy.
- Yi also visited the Zhijiang Lab, a research institute established jointly by the Zhejiang provincial government, Zhejiang University, and Alibaba.
- In 2021, China penalized Alibaba's record 18.2 billion yuan ($2.6 billion) for monopolistic behavior.
- Alibaba's shares have lost two-thirds of their value in Hong Kong and New York after the Beijing crackdown, and the U.S. issued threats to delist Chinese companies from its main bourse.
- China's intense crackdown compelled Alibaba and its peers to chase overseas for growth.
- The U.S. embargo on China over its access to cutting-edge technology served as a double whammy for the Chinese tech companies.
- Price Action: BABA shares closed higher by 0.68% at $86.80 on Friday.