In recent times, Alibaba has garnered significant attention in the capital markets with a remarkable performance that has seen its stock price surge by 50% from its lowest point, effectively adding around 1 trillion RMB to its market capitalizationThis impressive growth trajectory not only highlights Alibaba as the largest contributor to the Hang Seng Tech Index's gains but also plays a pivotal role in propelling the Hong Kong stock market's robust reboundThe upward momentum of the Hong Kong market, in turn, has had a positively reciprocal effect on the A-share market, reflecting a broader trend of recovery in the regionSince the beginning of 2025, Hong Kong stocks have established themselves as standout performers in the global capital markets, with Alibaba at the forefront of this resurgence.

Reflecting on recent years, Chinese technology giants have faced a tumultuous journey in the capital markets, experiencing significant stock price declines that have placed their valuations at a noticeable disadvantage compared to their American counterpartsTencent, with its deep moat in business operations and ongoing share buyback strategy, managed to maintain a relatively stable market presenceSimilarly, Xiaomi made strides into the electric vehicle sector, marking a successful shift into a new era of entrepreneurship that distinguished its stock performanceDespite these noteworthy achievements, many tech companies, Alibaba included, have largely been situated at market lows.

Over the past few years, Alibaba has encountered a myriad of adverse factorsOn the regulatory front, China's government has aggressively pursued policies aimed at curbing disorderly capital expansion, which placed certain constraints on Alibaba's business expansionAdditionally, the shelving of Ant Group's IPO plan posed significant challenges to Alibaba's strategy within the fintech landscapeCompounding these issues, Alibaba's core e-commerce business has been under intense competition from emerging platforms like Pinduoduo

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The rise of novel business models such as live-stream shopping has further diluted Alibaba's market share, leading to a decline in its competitive edge within the e-commerce space.

However, as market dynamics began to shift and Alibaba made proactive adjustments, a turning point gradually emergedThe effective enforcement of policies against chaotic capital expansion has led to a more regulated market environment, establishing a solid groundwork for the healthy development of companies like AlibabaIn response to this backdrop, Alibaba undertook substantial organizational reforms, optimizing internal management processes and consolidating business resourcesThese efforts resulted in a notable increase in operational efficiency, while simultaneously making its business layout clearer and more rationalThis marked the moment when Alibaba's development trajectory began to change, leading to a rebound in its stock price.

The recent significant surge in Alibaba's stock price can largely be attributed to the external investors' reassessment of Chinese assets triggered by the launch of DeepSeekThis cutting-edge artificial intelligence language model has showcased China's technical prowess in the field, prompting a renewed interest and evaluation of the Chinese tech sector by global investorsIn this context, Alibaba's extensive foundations in e-commerce, cloud computing, and its vigorous investments in AI technology have made it a focal point for foreign capital re-engaging in Chinese assets.

On the technology development front, Alibaba is currently focusing on advancing its proprietary large modelsThe release of Qwen2.5-MAX has positioned Alibaba at the forefront of industry benchmark assessments, boasting over 90,000 derivative models globally—a remarkable achievement that speaks volumes about its technical capabilitiesAlibaba Group's CEO, Wu Yongming, has indicated that the company plans to unveil a deep reasoning model based on Qwen2.5-MAX in the near future, which is anticipated to broaden its application scenarios and enhance its performance in complex reasoning tasks

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This initiative holds the potential to usher in groundbreaking advancements in industry developmentMoreover, the partnership between Apple and Alibaba injects new vigor into Alibaba's business growth, facilitating market channel expansion and amplifying brand influenceThis collaboration is poised to yield synergies in areas such as technological innovation and user experience optimization, carving out new avenues for Alibaba's future development.

As for whether Alibaba's upward momentum is nearing its peak, there is a strong belief that over the long term, the valuations of Chinese tech firms are likely to engage in a reciprocal advancement alongside their international counterpartsIn certain sectors, Chinese tech companies have already demonstrated leading-edge technological capabilities, buoyed by innovation and the expansive Chinese marketTake Alibaba as a prime example—its comprehensive ecosystem in e-commerce, robust logistics infrastructure, and deep integration of big data and AI technologies have cemented its position within the global e-commerce landscapeAs technology continues to evolve and markets expand, the competitive capabilities of Chinese tech companies are expected to strengthen, enabling them not only to narrow the valuation gap with their international peers but potentially surpass them in specific advantageous domains.

Nevertheless, it is essential to acknowledge that in some niche sectors, certain Chinese tech firms have valuations that already exceed those of their American counterpartsThis scenario necessitates that these companies prioritize innovation while also focusing on profitability and market share enhancement to maintain sustainable high valuation levels.

Ultimately, the rise in Alibaba's stock price does not solely stem from its strategic adjustments and technological innovations; it also reflects heightened confidence among global investors in the Chinese technology industryLooking ahead, as the Chinese tech sector continues to mature and global markets expand, Alibaba is well-positioned to secure a more advantageous stance in the global tech competition, paving the way for higher-quality growth in the future.