Chinese e-commerce platform Alibaba (BABA Quick QuoteBABA - Free Report) surged more than 8% Wednesday morning following foreign regulatory approval for a fundraising plan in relation to billionaire Jack Ma’s Ant Group. Alibaba, a Zacks Rank #3 (Hold), owns a stake in Ant, and the stock has risen to kick off the new year on a softening of China’s restrictive COVID policies.

China’s reopening should help to boost the economy and corporate profits. Regulators approved a plan to raise $1.5 billion for Ant’s consumer unit. This points to a potential softening between Chinese authorities and the country’s tech giants.

Alibaba is a Zacks Rank #3 (Hold) stock. The e-commerce giant has beaten earnings estimates in each of the past four quarters, with an average surprise of 13.38% over that timeframe. The stock appears well-positioned to extend its recent gains.