Chinese Equities Surge as Export Data Defies Trade Tensions, Alibaba Leads Gains

Chinese equities posted significant gains on March 10, 2026, as robust export data from Beijing defied expectations of a trade slowdown, boosting investor confidence in the economy’s underlying strength. Alibaba (00700.HK) surged 7.4% in Hong Kong, contributing heavily to the broader rally, while the Shanghai Composite (SSEC) climbed 3.8% to close above 3,250 points. The strength extended across sectors, with industrial and materials stocks up 4.1% and 4.6% respectively, reflecting renewed demand for Chinese-manufactured goods abroad. The rally followed official data showing China’s exports rose 8.7% year-on-year in February 2026, surpassing analyst forecasts of 6.2%. This marks the third consecutive month of export growth above 8%, with shipments to Southeast Asia, the EU, and North America all registering double-digit increases. The resilient export performance suggests domestic manufacturing activity remains strong, despite persistent geopolitical tensions and tariff pressures from major trading partners. Market indicators reflected heightened risk appetite: the CBOE VIX (^VIX) fell 12.3% to 14.2, signaling reduced volatility fears, while crude oil futures (CL=F) gained 2.1% as stronger Chinese demand lifted global commodity sentiment. The moves underscore a shift in investor sentiment toward emerging markets, particularly China, which has seen a 14.3% rebound in equity valuations since the start of the year. The rally is expected to have ripple effects across global markets, benefiting commodities, Asian tech stocks, and global supply chains. Investors are now reassessing the risks associated with China’s economic trajectory, with the recent export figures suggesting that Beijing’s economic policies are effectively supporting external demand and domestic recovery.