Chinese e-commerce juggernaut Alibaba Group Holding (NYSE:BABA) maintained its stimulus-driven rally Monday.

As per SCMP, John Choi of Daiwa Securities expects e-commerce companies to be the key beneficiaries of further stimulus measures, which were trading below their three- and five-year averages.

The rally reflects improved investor sentiment backed by Beijing’s stimulus measures and strong fund inflows into Chinese and Hong Kong equity markets, aiding the chip sector, the Wall Street Journal reports.

Also Read: Taiwan Semiconductor’s 2-Nm Breakthrough Puts Taiwan a Decade Ahead of China’s Semiconductor Industry: Report

China’s semiconductor sector has suffered since the pandemic erupted in 2020. The pandemic disrupted its supply chains and prompted the world to rethink its dependence on the Asian country for semiconductor chips for smartphones, cars, PCs, and other electronic gadgets.

China could launch a fiscal stimulus of 1.5 trillion yuan-2 trillion yuan, equivalent to $212.8 billion-$283.7 billion, the Wall Street Journal cites UBS economists.

Investors can gain exposure to Alibaba, Baidu, and JD through the iShares China Large-Cap ETF (NYSE:FXI) and the KraneShares CSI China Internet ETF (NYSE:KWEB).

Price Action: BABA stock is up by 2.27% to $117.12 in the premarket session at the last check on Monday. JD is up 1.23%, LI is up 4.32%, XPEV is up 2.89%

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Photo by Oleg Elkov via Shutterstock