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The latest statement from the National Development and Reform Commission (NDRC), China’s top economic planner, after its inspection on several platform companies, highlighted China’s commitment to further support the platform economy and the private sector, Morgan Stanley said in a note.
That’s consistent with the bank’s view that China’s internet sector has entered a cycle of easing regulatory following the government crackdown that started in late 2020, it said.
In addition, the NDRC, along with other governments departments, praised internet platforms including Alibaba, Tencent and Meituan for their contributions in facilitating the country’s technological advancement, upgrading traditional industries and increasing the country’s competitiveness globally, indicating that the authorities will step up support to the platform economy and promote the healthy development of the private economy. Read more …
The regulatory environment for China’s internet sector will likely become more normalized and lenient after three years of regulatory overhaul, it said .
Alibaba’s is expected to become the prime beneficiary of the easing regulatory cycle, with more clarity on fintech regulation (i.e. license for finance holding company) as a potential positive catalyst, it said.