China has shown signs of easing its crackdown on the technology sector which has wiped billions of dollars of value from its most prominent companies.
But analysts said Beijing’s recent positive rhetoric should not be mistaken for a reversal of policy.
“I think the big tech companies will have a grace period for maybe the next six months,” Linghao Bao, tech analyst at Trivium China, told CNBC’s “Squawk Box Europe” on Tuesday.
“However, this is a really not a U-turn on the tech crackdown, the long-term outlook hasn’t changed yet. Because Beijing has already come to the conclusion that it