Chinese tech stocks listed in Hong Kong have recorded a surge in price value. On Tuesday, companies like Alibaba, JD.com, and Tencent benefited from the stock market, as their stock prices soared. These companies were severely affected by the regulatory laws China imposed in the tech industry.
However, China introduced a significant data protection rule last Friday. Experts are predicting that these could slow down the regulatory laws imposed by the Chinese government and help companies recover and grow further. Today’s price soar confirms how the new law truly helped these companies.
Current Stock Prices Are Above 7%
Despite experiencing enduring days of regulatory pressure from China, the listed tech stocks rose significantly, with a few companies breaking the 10% index. The Hong Seng Tech stocks increased to 7% after the company witnessed a turbulent bearish week in the stock market. Last week, the tech shares fell by almost 20%, which is considered as gargantuan in the stock market. Ever since, the firm has been able to get back on its feet, recording more than 18% jump in share prices.
Still on stock rise, Meituan food delivery company stocks surged to a massive 13%. Alibaba rose to 9.5%. Tencent shares index ended at 8.8%. Surprisingly, it wasn’t Meituan food delivery stocks that witnessed the best index position. JD.com, a leading e-commerce giant, rose to 15%. This is by far the biggest shock in the stock market week.
China Regulatory Laws Aims to Establish Control
The strict regulatory laws introduced by the Chinese government aimed to fight monopoly in the tech industry and regulate how tech giants operate. Going against any of these laws attracts punishments and possibly litigation. Last Friday, China passed the Personal Information Protection Law (PIPL) to protect private information and prevent leaks.
The PIPL states that companies must get users’ consent before using any personal data. The law stipulates how the companies can handle this information, process it, and how to protect it when it’s going outside China. The country also passed two other laws, scheduled to be active later in November. All these intensifies efforts to fight crime and data misuse.
The recent gains in stock prices in the market is positive news – one whom experts pray will continue to allow investors and companies recover from the losses incurred. In addition, with more laws being made, companies will make stable earnings.