(JW Insights) Aug 14 -- China wrapping up its crackdown on tech firms and switching to supporting the industry sets the tone as the country's earnings season swings into action, reported Bloomberg on August 11.

“Big tech earnings may show continued recovery, with profits expected to rise 10.4% year-on-year in 2Q,” Bloomberg Intelligence analysts, including Marvin Chen, said. Tencent, JD, and Bilibili are among the majors reporting in the coming week.

US President Joe Biden last week imposed limits on US investments in China to restrict the country's ability to develop next-generation military and surveillance technologies that might threaten US national security. That's as Beijing relaxes its stance amid a weakening economy. Chinese Premier Li Qiang urged local governments to offer more support as he met with the nation's leading tech firms last month, promising a fair environment and lower compliance costs, reported Bloomberg.

Hon Hai Precision, a major supplier for Apple, plans to move more of its operations away from China to mitigate risks from tensions with the US. It's increasing investments to more than $1.2 billion in southern India.

Besides tech, Beijing has been trying to revive its troubled property market, including announcing rules to ease down payment and mortgage rates for first-home buyers. Longfor Group Holdings Ltd. reports earnings in a market where confidence is fragile after real estate developer Country Garden Holdings Co. failed to pay two-dollar bond coupons on time.

In the Chinese new-energy vehicles landscape, Xpeng announced results after the country outlined measures to bolster car purchases, said the Bloomberg report.

(Li PP)