Alibaba Stock Is Soaring. What’s Driving Its Big Move.

Alibaba

stock was on a tear Wednesday amid signs that the tough regulatory landscape for Chinese tech stocks—one of two key headwinds facing the sector—is improving. Progress has put investors on a buying streak.

Shares in

Alibaba

(ticker: BABA) has jumped 6.6% in U.S. premarket trading on Wednesday. The group’s Hong Kong-listed stock advanced 8.7%, leading tech stocks across the region higher to help the

Hang Seng Index

close 3.2% higher.