Alibaba Group Holding Ltd. (NYSE:BABA) saw an 11% surge on Monday, hitting $167.52 amidst a stronger yuan and weak US dollar. The stock closed 10.17% higher at $166.31. Chinese stocks rallied alongside the yuan’s appreciation, with the CSI 300 historically climbing 18% during previous yuan strengthening periods.

Inflows increase as the yuan appreciates, benefiting Chinese stocks like Alibaba (BABA). The rally was also supported by the growing adoption of its Qwen AI models, with over 700 million downloads on the Hugging Face developer platform. However, other AI stocks may offer higher returns with limited downside risk.

For more stock insights, check out “30 Stocks That Should Double in 3 Years” and “11 Hidden AI Stocks to Buy Right Now.” Disclosure: None. This article is originally published at Insider Monkey.

Read more at Yahoo Finance: Alibaba (BABA) Ends 11% Higher, Mirrors Chinese Market