Banks (Page 12)

After Alibaba leader Jack Ma was photographed at the occasion, a meeting between Chinese president Xi Jinping and some of the country’s top business leaders this week has fueled rumors and pleasure.

The personable and bright Mr Ma, who was one of China’s most prominent traders, had withdrawn from public career after criticising China’s financial market in 2020.

His arrival at Monday’s celebration has sparked a flood of conversation, with experts and researchers wondering what it means for him, China’s technology sector and the economy in public.

The answer has been largely positive- technology stocks, including those of Alibaba, rallied soon after the event.

On Thursday, the e-commerce large reported financial benefits that struck aspirations, with stock ending the trading day in New York more than 8 % higher. The company’s shares are up 60 % since the beginning of the year.

What do analysts think about Mr. Ma’s attendance at the event along with other well-known guests, including DeepSeek founder Liang Wenfeng?

As soon as Chinese state media began to publish images of the event, analysts began looking for clues about the significance of the meeting.

” Jack Ma’s attendance, his seating in the front row, even though he did not speak, and his handshake with Xi are clear signs he has been rehabilitated”, China analyst Bill Bishop wrote.

Users praised Mr. Ma for his return to the public eye on social media, which was rife with praise.

” Congratulations]Jack ] Ma for the safe landing”, said one user on Chinese social media platform Weibo.

” The comeback of]Jack ] Ma is a shot in the arm to the current Chinese economy”, said another.

It is surprising that observers have given an appearance by Mr. Ma such a high priority.

Before his disappearance from public life in 2020- following comments at a financial conference that China’s state-owned banks had a “pawn-shop mentality”- Mr Ma was the poster boy for China’s tech industry.

An English teacher with no background in computing, Mr Ma co-founded Alibaba in his apartment more than two decades ago after convincing a group of friends to invest in his online marketplace.

He later became one of the richest men in China by founding one of the biggest tech conglomerates.

That was before his “pawn shop” comment, when he also lamented the “lack of innovation” in the country’s banks.

It led to the cancellation of his$ 34.5bn ( £27.4bn ) stock market flotation of Ant Group, his financial technology giant.

At the time, Beijing attempted to demonize a business that had grown too powerful and a leader who had grown too outspoken.

Analysts agree that the fact he’s back in the spotlight, at a symposium where Xi Jinping himself presided, is a very good sign for Mr Ma.

However, some caution is needed because his absence from the speakers may indicate that he has not fully reclaimed his exalted status.

Additionally, the lack of coverage his attendance in Chinese media outlets appears to indicate that he has not undergone a complete recovery.

Xi Jinping told participants at the symposium that their companies needed to innovate, grow and remain confident despite China’s economic challenges, which he described as “temporary” and “localised”.

He added that now is the ideal time for private businesses and private entrepreneurs to show their full potential.

This has been widely accepted as the government telling private tech companies that they are also back in good graces.

Mr Ma’s downfall had preceded a broader crackdown on China’s tech industry.

State control over significant digital assets was a much harder reality for businesses as a result of stricter data security and competition laws.

Other companies across the private sector, ranging from education to real estate, also ended up being targeted in what came to be known as the” common prosperity” campaign.

Some people thought the common prosperity policies were intended to rein in the billionaire owners of some of China’s biggest corporations, giving them more influence over how their businesses run and how their profits were distributed.

However, as Beijing implemented stringent new rules, billions of dollars were wiped from the value of some of these businesses, many of them tech firms, rattling international investors.

This, along with a worsening global economy that was affected by the pandemic as well as Russia’s invasion of Ukraine, has contributed to considerable changes in China’s economic situation.

Growth has slowed, jobs for the country’s youth have become more scarce and, amid a property sector downturn, people are not spending enough.

As rumours that Mr Ma would attend Monday’s meeting began to spread, so did a glimmer of hope. According to Richard Windsor, director of technology at Counterpoint, Mr. Ma’s presence would indicate that China’s leadership “had enough of stagnation and could be prepared to let the private sector have a much freer hand.”

In addition to Mr. Ma and Mr. Liang, prominent figures from the tech and industrial sectors included those from Huawei, the telecommunications and smartphone industry, BYD, and many others.

” The]guest ] list showcased the importance of internet/tech/AI/EV sectors given their representation of innovation and achievement”, said a note from market analysts at Citi.

” ]It ] likely indicates the importance of technology… and the contribution of private enterprises to the development and growth of China’s economy”.

Those present at the meeting appeared to share that impression. Lei Jun, the chief executive of consumer electronics giant Xiaomi, told state media that he senses the president’s” care and support” for businesses.

The symposium was held after the country experienced what some observers have called the arrival of DeepSeek’s disruptive R1 artificial intelligence ( AI ) model at the end of last month.

The Chinese-made AI chatbot rose quickly among the list of applications and quickly gained popularity worldwide. It also triggered a sudden sell-off of major US tech stocks, as fears mounted over America’s leadership in the sector.

Back in China, the app’s widespread success has sparked a wave of national pride that has quickly spread to the financial markets. Investment has been made into Chinese stocks, particularly those of tech companies listed in Hong Kong and mainland China.

Goldman Sachs, the world’s largest investment bank, has also changed its outlook on Chinese stocks, citing the potential for rapid AI adoption to increase companies ‘ revenues and entice up to$ 200 billion in investment.

The main difference between this innovation and DeepSeek’s was that it was forced to make an ingenious decision due to China’s ban on the export of advanced chips and technology.

Now, with Trump back in the White House and his fondness of trade tariffs, Mr Xi may have found it necessary to recalibrate his approach to China’s entrepreneurs.

Some analysts believe Monday’s meeting was a step backwards in an effort to steer investors and businesses away from Mr. Xi’s national priorities rather than a return to an era of unregulated growth.

The Chinese president has been placing a greater emphasis on policies that the government has referred to as “high-quality development” and “new productive forces.”

Such ideas have been used to reflect a switch from what were previously fast drivers of growth, such as property and infrastructure investment, towards high-end industries such as semiconductors, clean energy and AI.

The goal is to achieve” socialist modernisation” by 2035- higher living standards for everyone, and an economy driven by advanced manufacturing and less reliant on imports of foreign technology.

Mr. Xi is aware that in order to get there, he will need the private sector a to be fully involved.

An associate professor at the University of Technology Sydney, Marina Zhang, stated to the BBC,” JackMa’s ] reappearance suggests that Beijing is pivoting from crackdowns to controlled engagement” rather than the end of the tech sector scrutiny.

The private sector must align with national priorities, including self-reliance in key technologies and strategic industries, while the private sector is still a pillar of China’s economic ambitions.