Tencent Holdings Ltd. shares have surged in recent weeks on signs that China is preparing to end its crackdown on major tech firms and on optimism about the country's reopening.

This week's key developments in China markets include Beijing's accelerating pivot away from Covid Zero and the deep distrust of President Xi Jinping among American investors.

Chinese government entities are set to take so-called "golden shares" in units of Alibaba Group Holding Ltd. and Tencent Holdings Ltd., suggesting Beijing is moving to ensure greater control over key players in the world's largest internet arena.

European markets soared to new heights at the start of the week, with sentiment bolstered by China's continued economic recovery. Investors are optimistic that the global economy is on the upswing, and are eager to capitalize on rising markets.

A top Chinese official has announced that investigations into the financial businesses of several internet companies have been completed, signalling an end to a two-year regulatory crackdown on China's homegrown technology giants.