Alibaba Group Holding Ltd (NYSE:BABA) led a tech rally in Hong Kong, pushing stocks higher for the third consecutive day.

The company marked its best performance in seven weeks after announcing $5.8 billion in share buy-backs last quarter.

"Sentiment is stabilizing following the consolidation from a May peak," SCMP cited analysts at Huatai Securities.

They added that despite differing market views, southbound flows should continue to support the market.

Also Read: Alibaba To Close Data Centers in Australia And India, Divert Investments To Southeast Asia And Mexico

Investor enthusiasm was dampened by a report indicating that China's services activity grew slowly in eight months.

On a separate note, Alibaba has become a new shareholder of OceanBase, the database company founded by its fintech affiliate, Ant Group. This move comes as OceanBase overhauled its shareholding structure and spun off into a separate entity, SCMP reports.

Prominent Chinese venture capital firms joined OceanBase's latest funding round last Saturday.

Ant announced its plan to make OceanBase one of three independent business units alongside Ant International and Ant Digital Technologies in March.

In January 2023, Ant Group also announced plans to dilute Jack Ma's voting power to make China's largest fintech firm more transparent and diversified, a crucial step to reviving its IPO plans.

Alibaba stock lost over 12% in the last 12 months as it battled intense domestic competition and its cloud and logistic unit IPO plans succumbed to market weakness.

Price Action: BABA shares traded higher by 0.71% at $74.20 premarket at the last check on Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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