Why Alibaba Shares Are Rising

Alibaba Group Holding Ltd – ADR (NYSE:BABA) shares are trading higher by 4.14% to $100.75 Thursday afternoon amid hopes of economic stimulus from China following President-elect Donald Trump's win.

Trump's campaign promise to raise tariffs on Chinese imports up to 60% threatens to disrupt trade and trim China's GDP by one percentage point, leading Beijing to consider significant fiscal measures to support its economy.

What To Know: With the National People's Congress meeting this week, analysts expect a stimulus package potentially exceeding 10 trillion yuan ($1.39 billion), aimed at local government debt and real estate.

For Alibaba, China's largest e-commerce and cloud company, stimulus could provide a crucial lift amid slowing consumer spending and domestic economic uncertainty.

Enhanced financial support would likely increase consumer purchasing power, directly benefiting Alibaba's core e-commerce revenue and affiliated services like Alipay.

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