Shares in Chinese tech giant Alibaba (BABA) jumped over 5% higher in pre-market trading today on reports that co-founder Jack Ma could soon meet with Chinese President Xi.
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Xi Wants Growth at Home and Abroad
It is understood that President Xi will be chairing a symposium on issues affecting the private sector next week, which will be attended by Ma and other Chinese entrepreneurs, mainly from the tech sector. This may include, as reported by the Japan Times, the chief executive of Tencent (TCEHY) Pony Ma, Lei Jun, the boss of smartphone and electric vehicle maker Xiaomi, Wang Xingxing, the founder of robotics group Yushu Technology, and Liang Wenfeng, the founder of DeepSeek. Shares in Tencent also rose on the news.
Topics to be raised at the event are likely to include U.S. policy under President Trump, including the ongoing tariffs trade war, as well as the performance of the Chinese domestic economy. Xi is likely to urge Ma and his peers to expand their businesses at home and abroad to better rival the U.S. and its tech firms.
A Thaw in Private Sector Relations
The meeting would signal a long-awaited thawing in the relationship between Xi, Jack Ma, and private businesses in China. Although a big supporter of the private sector in the early years of his leadership, Xi has more recently changed tack, promoting the idea of “common prosperity.” This calls on private firms to be more socially conscious and share the fruits of their success with employees and the nation as a whole.
This included regulatory crackdowns on private firms including the halting of Ma’s fintech company Ant’s IPO in 2020. This led to Ma largely withdrawing from public life and, more generally, put the brakes on investment and, to an extent, the ambition of Chinese private firms. Any signals that a new chapter for the private sector is to open will clearly be a boon for Chinese tech and its ongoing battles with U.S. firms in the AI field.
Is BABA a Good Stock to Buy?
On TipRanks, BABA has a Strong Buy consensus based on 11 Buy and 1 Hold rating. Its highest price target is $150. BABA stock’s consensus price target is $121.83 implying an 1.92% upside.
