“Alibaba may gradually become more attractive to some long-only funds because it is, after all, the largest e-commerce stock in China,” said Shawn Yang, senior analyst at Arete Research. “The expectations of macro improvement may be passed on to these consumer stocks. Alibaba is the largest among them, and its situation is improving.”
Alibaba, owner of the South China Morning Post, is among a number of Chinese technology stocks that received a boost this week, following surprise market-support measures initiated by the People’s Bank of China that included mortgage rate cuts and an unprecedented US$114 billion stock-buying facility.
The company’s stock on Thursday closed up 10.07 per cent in New York to US$105.07, while its Hong Kong shares gained 4.86 per cent to reach HK$102.50 on Friday. Shares of Nasdaq-listed e-commerce rivals PDD Holdings, operator of discount shopping platforms Pinduoduo and Temu, rose 13.57 per cent on Thursday, while JD.com climbed up 14.39 per cent.