Chinese stocks saw a significant rally in 2025, driven by renewed confidence. Analysts suggest the next leg of growth in 2026 will depend on stronger earnings. The market focus is shifting from valuation recovery to tangible profit growth.
Supportive macroeconomic policies are expected to boost margins. This push is coupled with a national drive for technological self-reliance.
Artificial intelligence is highlighted as a core driver for this next phase. Major internet companies, including Alibaba, are expected to leverage their advantages in AI capabilities.
Alibaba saw a significant stock rebound following its strong performance in 2025. For investors, a key factor in the coming year will be Alibaba’s ability to translate its AI investments into concrete earnings.