Weibo Corp., China's major social media platform, saw its stock soar 5.05% on Wednesday morning, riding on a broader rally in Chinese tech stocks and ADRs. This came after China unveiled an ambitious economic growth target of around 5% for 2025, raising expectations for more policy stimulus to boost consumption and support the tech industry.
During the opening session of China's annual National People's Congress, Premier Li Qiang announced the growth goal and pledged measures to stimulate domestic consumption, including a 300 billion yuan subsidy program for consumer goods purchases. The government also said it would support the application of large-scale AI models, in an apparent nod to the burgeoning AI industry.
The bullish economic plan and pro-tech stance fueled optimism among investors, sparking a rally in Chinese internet and tech stocks traded in the U.S. market. Alongside Weibo's gains, other major ADRs like Xpeng, JD.com, Baidu, Alibaba, and PDD Holdings saw pre-market jumps ranging from 2% to 8%. However, the persistent U.S.-China trade tensions continue to cast a shadow of uncertainty over the market.
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