Alibaba’s stock surged in Hong Kong after news of its AI partnership with Apple. Alibaba’s stock has been sluggish for a long time following crackdown on Beijing’s regulations on Beijing’s major technology.
Once the most famous name for Chinese technology, Alibaba had some difficult years in the stock market, but the e-commerce giant was able to head towards a turning point.
On Wednesday, Hong Kong’s Alibaba stock climbed over 8% after information reported it was working with Apple to roll out the AI capabilities of China’s iPhone. Neither company responded to requests for comment from Business Insider.
Hong Kong’s Hangsen index rose 2.6% on Wednesday due to a surge in Alibaba stock. The index has risen 9% since the start of the year.
The Hang Seng Tech index rose 2.6%. It’s been 18% higher until this year thanks to a sector-wide boost from Deepseek.
Stocks of high-tech giant Alibaba, whose stocks have been beaten since Beijing’s long-standing technological crackdown, have soared 38% this year in Hong Kong so far. The stock dual list on the New York Stock Exchange has grown by 33%.
Alibaba’s NYSE shares rose 1.3% on Tuesday, up 1.3% at $112.78 each. That’s about two-thirds of the peak of around $310 in October 2020. cracking down on his high-tech empire. The famous MA has also disappeared from public places.
Alibaba is trading much higher than its recent recent lows in October 2022.
This year’s company’s stock rallies precede news about a potential partnership with Apple.
On January 29th, Alibaba released a new version of the Qwen 2.5 AI model, joining the hype of Chinese AI technology amid the rise of Deepseek’s meteors.
China’s AI model presents serious challenges for capital-intensive development that has long been dominated by Western companies, Dilin Wu, research strategist at Brokerage Pepperstone, told Business Insider.
She said Trump’s tariffs on Chinese goods could put short-term pressure on Chinese tech companies.
The Chinese market also continues to struggle with a long-term recession.
“Deflationary pressures, weak consumer sentiment, and ongoing real estate slump remain headwinds. Short-term meetings driven by policy headlines are not enough. Sustainable benefits make real financial support Needs to be monitored by the National People’s Assembly on March 5th as the date to monitor potential stimulus news.
China’s stock outlook may be improving
The current rally of Chinese stocks is in contrast to the volatile market start in 2025. The first weeks of trade overturned the rally in late 2024 after Beijing raised its flag and promoted stimulus measures to strengthen the economy.
In September, billionaire investor David Tepper said it was a “everything” moment in Chinese stocks based on what he considered an attractive valuation .
In the fourth quarter, Tepper’s Appaloosa Management raised stakes in Chinese tech companies Alibaba, PDD and JD.com, according to a regulatory filing on February 10. All three stocks have recorded double-digit profits this year.
China’s stock outlook could improve, a Lombard Odier analyst wrote in a note last week.
“The recent revival of China’s technology sector suggests that from telecom giant Howay to Deepseyk and other candidates, US tariffs and export restrictions can only buy time in strategic competition in both countries. “I’m doing that,” they write.
China’s benchmark CSI300 rose 1% on Wednesday, down 0.4% since the start of the year. Meanwhile, the MSCI China index has recovered to around 15% since its January low.
“The US measures have also forced Chinese companies to innovate, which may have masked some of the US sector that cannot compete without government support,” analysts at Lombard Odier said. He added.
