U.S.-listed shares of Alibaba Group Holdings Ltd. rocketed Monday to post their best performance in more than four years as numerous Chinese internet stocks started to mount a comeback after a tough recent stretch.
closed up 10.4% Monday, making for their largest single-day percentage gain since June 8, 2017, when they gained 13.3%. The rebound Monday ended a six-day slide for Alibaba’s U.S.-listed shares.
Alibaba was among the leaders in a rally for Chinese internet stocks. U.S.-listed shares of Huya Inc.
rose 10.0% on the day, while shares of Baidu Inc.
increased 7.5%, and shares of iQiyi Inc.
climbed 5.9%. The category has been under pressure recently, in part due to fears about tensions between the U.S. and China that could force Chinese companies to delist from U.S. exchanges.
Chinese ride-hailing company Didi Global Inc.
said late Thursday that it planned to delist from the New York Stock Exchange and prepare for a Hong Kong listing. The announcement stoked concerns that other Chinese internet companies could follow, leading to a sharp selloff for the category Friday.
While part of Alibaba’s stock rally Monday could have been attributed to a broader rebound for the category, the Chinese e-commerce giant may also be benefitting from some company-specific developments. The company rolled out plans to reorganize its e-commerce business, according to The Wall Street Journal.
Alibaba last month cut its revenue forecast in the face of macroeconomic pressures in China as well as new competitive dynamics, fueling some concerns over the state of its core business over the next few years.
The shares of one key Alibaba rival didn’t join Monday’s rally: JD.com Inc.’s U.S.-listed shares
dropped 3.5% on the day, building on a 7.7% decline from Friday’s session.
Alibaba also announced overnight that its current chief financial officer, Maggie Wu, will be stepping down from her post as of April 1. Deputy Chief Financial Officer Tony Xu will succeed her, while Wu will serve as an executive director on Alibaba’s board.
Despite Monday’s rally, Alibaba shares have still had a rough year, declining nearly 47% over the course of 2021.