AsianFin -- Hong Kong-listed shares of Alibaba Group surged 5.28% on Wednesday, closing at their highest level since October 2021 and lifting the company’s market capitalization back above the HK$3 trillion (US$384 billion) mark. The stock has nearly doubled this year, with a year-to-date gain of 99.41%, bringing its latest market value to HK$3.08 trillion.

Alibaba’s latest earnings report showed a strong turnaround in profitability. In the second quarter of 2025, total revenue reached 247.65 billion yuan (US$34 billion), up 2% from a year earlier, while net profit jumped 76% to 42.38 billion yuan (US$5.9 billion).

Alibaba Cloud posted standout results, with revenue of 33.40 billion yuan, up 26% year-on-year—the fastest growth in nearly three years. Analysts noted that strong momentum in cloud computing and AI chips has made Alibaba a key beneficiary of market enthusiasm for technology leaders.

The stock’s rally has also been supported by robust capital inflows. Both southbound funds via the Stock Connect program and equity exchange-traded funds (ETFs) have recorded significant net purchases of Alibaba shares this year, reinforcing the company’s sustained share price strength.