Investing.com-- Hong Kong-listed shares of Alibaba (NYSE:BABA) Group (HK:9988) reached a three-year high on Monday, following reports of a meeting between founder Jack Ma and Chinese President Xi Jinping.
The anticipated encounter is seen as a positive signal for China's tech sector, which has faced regulatory challenges in recent years.
Alibaba shares climbed as much as 4.4% to HK$129.50 in early trading, reaching levels not seen since early 2022, but later pared gains to inch lower in anticipation of weak quarterly results.
Xi Jinping participated in a symposium focused on private enterprises, state media Xinhua reported on Monday. The meeting, seen as an effort to bolster confidence in the business sector, featured Xi addressing attendees after hearing their perspectives.
While specific details were not disclosed, Reuters previously reported that major business figures, including Alibaba co-founder Jack Ma, were expected to attend. The discussion aimed to encourage corporate expansion despite economic challenges and ongoing U.S.-China trade tensions, the report stated.
Investors are optimistic that a dialogue between Ma and Xi could signify a thawing in the regulatory environment that has weighed heavily on China's technology giants.
Alibaba is scheduled to release its quarterly earnings report on February 20. Markets anticipate earnings per share (EPS) and revenue to come in largely flat year-on-year.