BABA Stock Climbs On Regulatory Easing – Investor's Business Daily

BREAKING: Market Closes Mixed As Dow, S&P 500 Shed Gains 

Alibaba (BABA) and other China stocks received good news Monday as top government officials said a two-year regulatory clampdown on the nation’s internet companies was ending. BABA stock climbed.
The ending of the clampdown on the internet sector comes as billionaire Jack Ma agreed to cede controlling rights of Ant, a financial technology giant. Ant is an affiliate of e-commerce giant Alibaba.
In 2020, the planned $37 billion initial public offering of Ant was canceled by government officials, marking the start of a sweeping crackdown on the China internet sector. The IPO would have been one of the largest ever.
BABA stock jumped 3.2%, closing at 110.83 on the stock market today. Other China stocks initially popped, then pulled back.
“We see early signs of an easing regulatory environment with the government’s support for the private sector,” BABA stock analyst Gary Yu of Morgan Stanley wrote in a note to clients. “For the past 1-2 years, Alibaba has been in focus, so we think it could outperform other Chinese Internet stocks as the environment eases.”
China officials said they also plan to support private sectors, singling out internet platform firms. The government also will support companies that play a leading role in economic development. The idea is to create jobs and compete in the international market.
Last week, China regulators approved a plan that allows Ant Group to raise $1.5 billion for the company’s consumer finance unit.
Also benefiting China stocks is an easing of Covid policies, following three years of restrictions. That included the ending of citywide lockdowns and restrictions on some of the country’s massive manufacturing plants.
BABA stock has an IBD Composite Rating of 81.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
YOU MAY ALSO LIKE:
Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists
How To Use The 10-Week Moving Average For Buying And Selling
Find The Best Long-Term Investments With IBD Long-Term Leaders
IBD Stocks On The Move: Watch For Breakouts Here
Inside The IBD 50: Top Stocks To Watch
3:45 AM ET Alibaba stock has rallied sharply amid renewed signs of accumulation as investors bet on better times ahead for the Chinese…
3:45 AM ET Alibaba stock has rallied sharply amid renewed signs of accumulation…
President Biden’s Job Approval jumped 10% to 44%. The Presidential Leadership Index rose 7.2% to 47.8, still below the 50 benchmark to indicate optimism.
Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!
Get market updates, educational videos, webinars, and stock analysis.
Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.
*Real-time prices by Nasdaq Last Sale. Realtime quote and/or trade prices are not sourced from all markets.
Ownership data provided by Refinitiv and Estimates data provided by FactSet.
© 2000-2023 Investor’s Business Daily, LLC. All rights reserved

source