Not a crackdown: China regulators signal more neutral enforcement, shift from 2021 — SCMP

According to SCMP, a 14-page document issued by the State Council's Regulatory Reform Office envisages sectoral rules being rewritten around a principle of "market predictability," with enforcement decisions requiring prior notification and impact assessment. The document also refreshes the Anti-Monopoly Law enforcement regime guidance covering Alibaba, Tencent and PDD Holdings.

State Council spokesperson Wu Yong told a press briefing that "the reform will support investor confidence and employment." Hong Kong Academy of Political Economy researcher Andrew Sheng told SCMP that "this is a concrete step by Beijing to remove the uncertainty that has weighed on the economic softening since the 2021 tightening." Chinese Academy of Sciences professor Yu Hai assessed that "market trust comes from consistent enforcement, not the directive alone."

The Hang Seng Tech index rose 2.3% to 5,320 points and the Shanghai Composite climbed 0.9% to 3,460. Alibaba ADRs gained 4.2% in New York and Tencent ADRs added 3.1%. Goldman Sachs China strategist Kinger Lau wrote that "MSCI China has an additional 5-7% upside potential by year-end." CSI 300 futures rose 1.4%. Not investment advice.