Hong Kong shares of Alibaba open 2% higher, hitting a six-month high

Hong Kong shares of Alibaba open 2% higher, hitting a six-month high

Hong Kong shares of Alibaba Group Holding Limited (BABA) opened 2% higher on Tuesday, September 9, 2025, reaching a six-month high. The stock price climbed to HK$140.60 ($18.05) on the Hong Kong Exchange, adding to the company's recent gains that have seen a 40% rally in its U.S.-listed stock this year .

The upward momentum follows Alibaba's fiscal first quarter results, which showed revenue of 247.65 billion Chinese yuan ($53 billion), a 2% year-on-year rise, while net income jumped 78% to 43.11 billion yuan. However, it was the company's cloud division that captured investors' attention, posting impressive growth numbers that signal a strategic shift toward artificial intelligence monetisation .

Alibaba's cloud computing division emerged as the standout performer, with revenue totalling 33.4 billion yuan, representing a robust 26% year-on-year increase. This growth rate exceeded the previous quarter’s 18% expansion, demonstrating accelerating momentum in the company’s push into AI services .

Adding to the positive sentiment, CNBC reported that Alibaba is developing a new AI chip, which also supported the share price rally on Monday. This development represents a strategic move toward technological self-sufficiency, particularly given ongoing U.S. restrictions on advanced semiconductor exports to China .

The AI chip initiative aligns with China’s broader national agenda to achieve technological independence in critical areas. For Alibaba, developing proprietary chips could enhance its cloud infrastructure efficiency whilst reducing reliance on foreign technology suppliers .

The 2% Hong Kong rally follows Friday’s 13% gain in Alibaba’s New York-listed shares, indicating strong cross-market momentum. So far, investors have rewarded Alibaba with a 40% rally in its U.S.-listed stock this year .

The company’s quick commerce division generated revenue of more than 14.8 billion yuan ($22.6 billion), rising 12% year-on-year, demonstrating progress in this competitive segment. Despite the positive cloud results, Alibaba faces challenges in balancing growth investments with profitability .

The 2% single-day gain positions Alibaba as a bellwether for the broader Chinese tech sector’s recovery, with implications extending beyond individual company performance to regional market sentiment and global AI investment trends .

References:
https://colitco.com/alibaba-hong-kong-shares-surge-as-ai-fueled-cloud-growth-sparks-19-rally/
https://www.benzinga.com/markets/equities/25/09/47563258/alibaba-hong-kong-shares-rise-as-1-trillion-parameter-qwen-3-max-ai-model-debuts-to-challenge-openai-google