Overnight, tech stocks in China grew after Beijing disclosed that it has overhauled its national leadership group for the said sector.
The former National Technology and Education Leadership Group is tasked with doing the research and planning for the government strategy of China on technology. It has now had the “education” removed from its name in order to represent a narrowed focus from here on.
The latest news signals a possible policy boost to the said sector, which caused the Shanghai blue-chip stocks to rise. An index for the major IT companies in China increased by more than 4 percent, while another that is tracking its telecoms companies similarly improved.
A notice that was published on the website of the government yesterday revealed the creation of an official working group on tech being established because of “relevant arrangements,” in a similar style to the other industry-specific working groups that were established by Xi Jinping, the President of China.
Li Keqiang, the premier of China, will be leading the leadership group, with Liu He, the vice premier, acting as his deputy.
The well-known Made In China 2025 policy plan of President Xi has been behind most of the tech growth of the country to date and has even drawn in foreign attention during the recent months from the likes of Tesla which committed to building one of its so-called gigafactories in the region.
The deal was signed last month between Elon Musk, the chief executive of Tesla, and local officials. It will give way to a factory that will be able to produce up to 500,000 cars per year, generating jobs for Chinese engineers and allowing Tesla to bypass massive auto tariffs.
The news also gave rise to the gains by individual tech powerhouses in China, including Semiconductor Manufacturing International, the chipmaker, which increased by 3.5 percent.
The largest internet giant in the region, Tencent, had improved by 2.6 percent as the markets closed this morning.