The Chinese stock market has been having its AI moment this year and some stocks like Alibaba have been great winners. The stock is now up more than 110% YTD on the Hong Kong Exchange and more than 10% just today after the CEO announced increased AI spending and new products.
“We are vigorously advancing a three-year 380 billion yuan AI infrastructure initiative with plans to sustain and further increase our investment according to our strategic vision in anticipation of the articificial superintelligence era” the CEO Eddie Wu said.
Alibaba stock has been ranging at the lows since 2022 but Trump’s aggressive policies have pushed China to pursue self-reliance on AI and a race for supremacy. The Chinese are going all in and this increased spending and investment is driving the stock market higher.
BABA weekly chart
This article was written by Giuseppe Dellamotta at investinglive.com.