Why did Alibaba shares climb 13% Wednesday? It's because of Ant Group
Jan. 04, 2023 5:40 PM ETAlibaba Group Holding Limited (BABA)BIDU, TCEHY, JDBy: Rex Crum, SA News Editor49 Comments
- Alibaba (NYSE:BABA) shares surged nearly 13% Wednesday as Chinese stocks on the whole rallied as Beijing gave the approval to a massive capital increase to financial technology company Ant Group.
- Prior to the start of trading, China awarded Ant Group a $1.5B capital increase. The move was seen on Wall Street as a sign that China may be easing up on more than two years of regulatory crackdowns on many of the countries top tech companies.
- And as Alibaba (BABA) owns about one-third of Ant Group, the Chinese e-commerce and Internet giant was expected to benefit from China's new financial policies toward some of its largest companies.
- In addition to Alibaba (BABA), big gains also came from the likes of JD.com (JD), Tencent Holdings (OTCPK:TCEHY) and Baidu (BIDU), all of which ended the day in positive territory.