New York, January 13, 2026, 05:32 EST — Premarket
- Alibaba’s U.S.-listed shares surged over 10% in the latest session, buoyed by policy cues from Beijing.
- Traders await Tuesday’s U.S. inflation figures, which could shake up rates and the dollar.
- Investors are closely tracking if China’s move to rein in price wars will relieve margin pressures in delivery and “instant retail.”
Alibaba Group Holding Ltd’s U.S.-listed shares (BABA) grabbed attention ahead of Tuesday’s open after closing up 10.2% at $166.31 in the previous session. (Wall Street Journal)
The rally counts because Alibaba is once again a spark for “China policy” trades — any sign of accelerated AI investment, eased competition, or stable pricing gets snapped up fast. This comes as U.S. markets gear up for new inflation figures, which often steer risk asset sentiment.
The U.S. Consumer Price Index, a key inflation indicator, is set for release at 8:30 a.m. Eastern on Tuesday. Economists forecast a 0.3% increase for December. “We expect the CPI report to show a meaningful payback after collection issues” caused by the recent government shutdown, Oscar Munoz, chief U.S. macro strategist at TD Securities, told Reuters.
Alibaba surged on Monday after China’s industry minister Li Lecheng told Xinhua the government will push forward with its “AI+ Manufacturing” action plan, aiming to smarten up factories. Li also announced fresh financial backing for “little giant” firms — a term for small, specialised tech manufacturers — and highlighted focus areas like quantum tech, humanoid robots, brain-computer interfaces, and 6G. (Investing)
Investors are also digesting Beijing’s latest move to crack down on what it calls “involution-style” competition — a term for cutthroat battles that drain cash and crush profits. Recently, China announced an investigation into food delivery platforms operated by Meituan and Alibaba, after fierce price wars hurt their earnings. Both companies said they welcome the probe and will cooperate. (Reuters)
Alibaba’s delivery and quick-commerce efforts are right at the heart of this battle. If regulators impose a halt on subsidies, margins might improve — yet customer growth could stall if competitors carry on spending regardless.
Monday saw heavy trading, with roughly 35 million shares swapping hands—well above the stock’s recent average, according to MarketWatch data. Despite the jump, the ADR remains about 14% under its 52-week peak. (MarketWatch)
The catch: policy chatter doesn’t guarantee earnings growth, and ramping up AI projects often means higher costs upfront before seeing returns. A CPI figure that surprises on the upside might push Treasury yields and the dollar higher, which usually drags on Chinese ADRs.
Traders are gearing up for Tuesday’s CPI report, which will likely move U.S. rates and risk sentiment right away. Alibaba is set to report earnings around Feb. 19, according to Nasdaq’s calendar, a key moment that could intensify discussions about whether policy support is actually boosting its revenue and profits. (Nasdaq)
