Alibaba shares jump 7% as China upgrades focus on domestic consumption
Alibaba shares soar as China’s leadership prioritizes retail spending.
Shares of Chinese e-commerce giant Alibaba popped nearly 8% in early afternoon trading after China reaffirmed its 2025 economic growth target Tuesday evening. The nation stuck to its 5% growth target, defying trade tensions, weak domestic demand, and a deepening property slump.
The announcement, made by Premier Li Qiang, follows China’s confirmation that it met its 2024 GDP goal, expanding by 5%. China’s leaders are currently convening to discuss their policy agenda, and measures to boost consumption are in focus to help the country overcome growth headwinds tied to trade barriers.
“Boosting domestic consumption is back as the No. 1 work task, up from No. 3 last year,” Citigroup strategists including Pierre Lau wrote.
That’s good news if you’re in the commerce (or e-commerce!) business.
Adding to Alibaba’s momentum, the company recently beat Q2 FY 2025 expectations, posting 5% revenue growth to $33.7 billion. Meanwhile, net income soared 58% to $6 billion. Shares of Alibaba are up 93% over the past year.
