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p>Tech rally

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p>The slowdown in China's economy has largely been a self-inflicted headache, spurred by President Xi Jinping's crackdown on private enterprises, a campaign to contain excessive borrowing by real estate developers, and a constant adherence to zero-Covid policy.

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p>There are signs that the regulatory nightmare that tech companies face could be over. In the last week, The Wall Street Journal reported that Beijing's cybersecurity audit of Didi was set to be completed. The move would allow the ride-hailing company to be reinstated in app stores on mainland China about a year after Didi was removed over data privacy violations.

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p>Didi's shares rose 24% on Monday on Wall Street after the report.

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p>Other reports in the media this week suggest an end to the crackdown. On Thursday, Bloomberg said Chinese regulators have started discussions early regarding a possible revival of Ant Group's IPO, citing people who are familiar with the issue. Reuters reported Thursday that Ant, the owner of the popular Alipay app, plans to prepare a preliminary prospectus order to launch the offering as early as next month.

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p>Jack Ma was set to make history by launching a $37 billion IPO for the Alibaba affiliate in Shanghai, Hong Kong and Hong Kong in November 2020. China stopped the Ant deal just a few days before the date it was scheduled to trade. This marked the beginning of a regulatory offensive that dominated the internet industry for the following year.

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p>"Uninvestable" China could make an appearance

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p>Ant Group stated Thursday that it has no plans to launch an IPO. The China Securities Regulatory Commission added that it has not conducted any research regarding the possibility of an Ant IPO.

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p>Alibaba (BABA) shares have been tossed around by the news, but they are still up 18 percent this week on Wall Street.

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p>The stock of Hong Kong has risen for five consecutive sessions and is now up 22% from week-to-week. This is the highest weekly performance since Alibaba's secondary listing in 2019.

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p>In recent weeks, the Chinese government has provided further relief for the tech sector. Regulators have stated that they will be supportive of listing tech companies overseas. companies.

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p>And on Tuesday, authorities handed out 60 new gaming licenses following a months-long freeze. Tencent (TCEHY), China's largest gaming company, increased its share by more than 6% in the wake of the news.

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p>The Hang Seng Tech Index, which tracks the top 30 Chinese tech stocks in Hong Kong, is up 10% this week.

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p>Trade expands

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p>China also released strong trade data for May, after a slump in April. Exports to China increased by 16.9 percent in May compared to one year ago, as compared to only 3.9 percent growth in April.

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p>Imports, however, increased for the first time in three months.

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p>"The opening in Shanghai of China's largest port port in China in the last week in May was the main factor behind the growth in imports and exports" stated Iris Pang chief economist for Greater China at ING Group.

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p>Shanghai was under lockdown since the end of March, forcing factories to close and causing significant shipping delays.

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p>Shanghai is finally "reopening", but the trauma of lockdown lives on

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p>VesselsValue?, an information company that provides shipping information has announced earlier this week that Shanghai's port is experiencing congestion and is nearly "back-to-normal". The wait time average has decreased to 28 hours, down from 66 hours in April.

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p>On Wednesday, Premier Li Keqiang urged local government officials to ensure to ensure smooth logistics and transportation and ensure supply chains are protected. He reiterated his previous demands for China to improve its economic growth and decrease unemployment in the second quarter. https://telegra.ph/Hire-a-Game-Server-for-a-Great-Price-09-14 </p>

p>The cabinet of the country, known as the State Council, released a new package of 33 stimulative measures last week to boost economic growth. It included the equivalent of tens of millions of dollars of tax cuts as well as infrastructure spending.

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p>Is enough?

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p>But analysts remain cautious.

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p>The trade data for May does not change "the general consensus that China's trade surplus is going to narrow," as demand for Chinese exports declines due to an economic slowdown in the world, HSBC analysts said Thursday.

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p>The World Bank warned earlier this week that there is an increasing risks of stagflation in the global economy. The World Bank is now forecasting that the global economy will shrink from 5.7% in 2021 down to 2.9% in 2022. This is significantly less than the 4.1 percent forecast in January. Global inflation, however, is likely remain higher than the target in a number of economies, the bank said.

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p>HSBC analysts said that Beijing's investment drive in property and infrastructure is likely to increase China's imports of commodities which will increase the country's inflation issues.

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p>"As commodity prices remain elevated, these imports will be expensive for China," they said.

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p>Shanghai neighborhoods are locked down the same day restrictions were eased

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p>China's commitment towards tough Covid restrictions is a major risk.

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p>President Xi Jinping said Wednesday that the country should adhere "unswervingly" to its zero-Covid policy, while urging officials to boost the economy, according to state-owned Xinhua News Agency.

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p>As the authorities prepare for tests in mass following the lifting of Covid restrictions for the majority of Shanghai's population of 25 million There are a growing number of Shanghai areas will be placed under temporary lockdown.

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p>The largest Chaoyang District in Beijing also announced on Thursday that all entertainment venues would be shut down, just days after they were granted permission to reopen.

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p>"Markets have naively assumed that China was one and finished with Beijing and Shanghai," said Jeffrey Halley the senior market analyst for Oanda, on Thursday.

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p>"Covid-zero isn't going away in China and neither is the virus. Therefore, the odds of restrictions being extended with a consequent decline in China's economy remain the same," said the official.

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p>This report was compiled by CNN's Beijing bureau in Beijing.

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