Alibaba Stock Soars on Meeting Between Xi Jinping and Jack Ma

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Hong Kong-listed shares of Alibaba Group (HK:9988) hit a three-year high on Monday following news of a meeting between founder Jack Ma and Chinese President Xi Jinping.

The highly anticipated meeting is viewed as a positive sign for China's tech industry, which has been dealing with regulatory hurdles in recent years.

Alibaba's shares rose by as much as 4.4% to HK$129.50 in early trading, marking their highest level since early 2022, before later trimming gains as investors braced for potential weak quarterly results.

Xi Jinping took part in a symposium focused on private businesses, with state media Xinhua reporting on Monday that Xi addressed the attendees after hearing their feedback. While specifics were not shared, Reuters had earlier reported that prominent business leaders, including Alibaba co-founder Jack Ma, were expected to attend. The aim of the gathering was to encourage business growth despite ongoing economic challenges and US-China trade tensions.

Investors are hopeful that the meeting between Ma and Xi may signal a relaxation of the regulatory pressure that has been a burden on China's tech giants.

Alibaba is set to release its quarterly earnings report on February 20, with markets expecting little to no change in year-on-year earnings per share (EPS) and revenue.

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