A potential meeting between Chinese President Xi Jinping and Alibaba Group Holding Ltd. (OTC:BABAF) (NYSE:BABA) co-founder Jack Ma this week comes as China’s technology stocks continue their strong rally.
What Happened: Prominent entrepreneurs including Ma have been invited to meet with China’s top leaders, reported Bloomberg, citing sources. This potential show of support for the private sector comes as Chinese tech shares in Hong Kong reach their highest levels since February 2022.
The China Enterprises Index jumped 4.1% on Friday, while Alibaba’s Hong Kong-listed shares surged 6.3%, contributing to over 50% gain in the past month, according to data from Benzinga Pro.
Alibaba is scheduled to report earnings on Thursday.
“Such a high-profile endorsement sends a clear message of support from China’s government, which views the tech sector as a future driver of economic growth,” said Bloomberg Intelligence analyst Robert Lea.
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Why It Matters: A meeting between Xi and Ma would mark a significant turning point since Beijing halted Ant Group‘s IPO in late 2020, which would have been the world’s largest public offering. That event triggered a regulatory crackdown on China’s technology sector.
The rally has been partly fueled by Chinese startup DeepSeek‘s AI model, which entered the market as a potential competitor to U.S. offerings. This development aligns with Xi’s push for new productive forces and technological self-sufficiency amid U.S. restrictions on high-end chips.
Alongside the stock rally, Apple Inc. is reportedly partnering with Alibaba to bring AI features to iPhones in China by mid-2025. This collaboration comes as Apple seeks to regain market share in what remains its second-largest market after the U.S.
Price Action: Alibaba Group’s shares on the Hong Kong exchange are trading at 129.10 Hong Kong dollars ($16.59), up 4.03% as of 9:41 AM local time. Year to date, the stock has risen by 58.79%.
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