Platform economy to get more support
Several authorities, including the top securities regulator and the central bank, are ramping up calls to support and facilitate the development of platform companies after the tone-setting Central Economic Work Conference last week.
With such support, platform enterprises — including internet and tech firms like Alibaba Group Holding and Tencent Holdings that leverage platforms to offer services — will be able to play a "fresh and greater "role in driving the country's economic recovery amid COVID-19 outbreaks, industry experts said.
The China Securities Regulatory Commission said in a meeting on Wednesday that it will accelerate the process for approving "green light" cases for overseas listings of platform enterprises, and will work to implement the reform of the overseas listing system for such companies.
Green light cases, according to Zhong Gang, a law professor at East China University of Political Science and Law, are mainly given to tech and internet investment deals, most likely to be opportunities that can help boost development of the real economy.
In a separate meeting chaired by People's Bank of China Governor Yi Gang on Wednesday, the central bank vowed to improve the level of normalized supervision over financial activities by platform companies and guide their financial business to develop in a standardized and healthy manner.
The central bank will work to support platform companies to leverage their advantages in scenarios, data and technology, and play a greater role in promoting technological innovation, enhancing international competitiveness, and expanding domestic demand, it was decided at the meeting.
On Thursday, shares of Alibaba soared 4.09 percent in Hong Kong. The Hang Seng Index closed up 2.71 percent.
"With such support, platform enterprises and the digital economy are expected to play their role as a fresh driver and stabilizer of the country's economic recovery," said Wang Xiaoming, head of industrial and technological innovation at the Institute of Science and Development at the Chinese Academy of Sciences.
"As an important part of the new economy, the platform economy has undergone a period of healthy governance, coupled with gradual improvement of related laws and regulations, and it now has conditions to help accelerate economic development," Wang said.
Amid internal and external economic uncertainties, Wang said that platform companies can better play a leading role in driving both domestic economic growth and international industrial advancement.
The Central Economic Work Conference that ended on Dec 16 stated that platform companies will be supported to "fully display their capabilities" in bolstering economic growth, job creation and global competitiveness.
An executive meeting of the State Council, China's Cabinet, on Tuesday also emphasized that the sound and sustainable development of the platform economy will be supported.
"To some extent, supporting the healthy and sustainable development of the platform economy will build up new competitive advantages for China," said Shan Zhiguang, director of the information and industrial development department at the State Information Center.
