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Today, Tuesday May 17, China’s top economic official, Vice Premier Liu He, said that the government will support the development of digital economy companies and their public stock listings.

The comments delivered after a symposium with the CEOs of some of the country’s largest private technology companies came just a day after the National Bureau of Statistics reported that industrial output fell 2.9% in April from April 2021, and that retail sales contracted 11.1%. Financial markets in China and the United States interpreted the remarks as a public show of support for China’s Internet companies and a signal that Beijing is pulling back on a year-long clampdown on technology giants in order to stimulate economic growth. In March Liu vowed to stabilize battered financial markets, and promised to ease a regulatory crackdown that started with the cancellation of Ant Group’s record IPO.

The Hang Seng Tech Index rallied as much as 6% Tuesday on optimism the meeting would affirm Beijing’s intention to dial back some of its restrictions. And Chinese internet stocks jumped in U.S. trading. In New York on Monday, JPMorgan Chase analysts upgraded tech stocks including Alibaba and Tencent to overweight from underweight. Just two months ago the company called the sector “uninvestable”. The Nasdaq Golden Dragon China Index rose to its highest level in two weeks.

In Tuesday’s New York trading Alibaba (BABA) climbed 6.37% and Tencent Holdings (TCEHY) gained 3.61%. JD.Com (JD) was ahead 4.15%. Meituan (MPNGF) closed higher by 3.84%.

The iShares China Large Cap ETF (FXI) gained 3.04% on the day.

The iShares China Large Cap ETF is a member of my Perfect 5 ETF Portfolio. I rebought Tencent Holdings for my long-term 50 Stocks Portfolio on January 3, 2022. It is also a member of my Volatility Portfolio. I added Alibaba to my Jubak Picks Portfolio on April 29, 2022.

Full disclosure: I own Call Options on the iShares China Large Cap ETF in my personal portfolio.