Chinese concept stocks broadly traded higher in pre-market trading on Wednesday. Alibaba jumped more than 11%, Baidu climbed nearly 7%, while JD.com, Bilibili Inc. and NetEase each rose 4%.

The primary driver is Alibaba's FY2027 Q1 earnings preview, which indicates Alibaba Cloud quarterly revenue growth accelerating to approximately 45%, significantly surpassing market expectations. Cloud EBITA margin improved from the prior quarter's 9.1% to low double digits, consistent with management guidance. Additionally, Taobao Flash Purchase is reducing losses faster than anticipated, narrowing the unit economics gap with competitors while maintaining stable market share during subsidy reduction. The business is shifting focus toward higher-value restaurant and non-food orders, with further UE improvement expected.

Separately, Alibaba is consolidating three enterprise-level Agent products — QoderWork, Wukong, and MuleRun — into a unified platform, advancing its AI business integration. A recent Frost & Sullivan report confirmed Alibaba Cloud holds 40.1% market share in China's full-stack AI cloud services market, ranking first and exceeding the combined share of the second through fourth players.