What's Going On With Alibaba Stock?

Alibaba Group Holding Ltd BABA shares are trading higher Wednesday following reports Chinese regulators approved a capital raise for Alibaba co-founder Jack Ma's Ant Group.

What Happened: According to a Bloomberg report, the China Banking and Insurance Regulatory Commission division approved the Ant Group consumer unit's plans to raise 10.5 billion yuan ($1.53 billion), signaling progress is being made on China's tech overhaul.

Ant Group has aimed to come into compliance since regulators began cracking down on its business in 2020. The regulatory support for the planned capital raise is a potential sign that the government is easing its stance. 

"We view it as a signal on Ant’s regulatory rectification wrap-up," Leon Qi, an analyst with Daiwa Capital Markets Hong Kong, reportedly said.

Related Link: Jack Ma's Ant Group Gets Regulatory Nod For $1.5B Capital Raise Plan

On Tuesday, Alibaba shares traded higher amid optimism that the recent wave of COVID-19 infections has peaked in some of China's major cities. 

Alibaba operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). 

BABA Price Action: Alibaba has a 52-week high of $138.70 and a 52-week low of $58.01.

Alibaba shares are up 6.43% at $97.89 at time of publication, according to Benzinga Pro.

Photo: courtesy of Alibaba.