China Stocks Surge as Trump Visits Beijing

CNBC reported Wednesday that China stocks rally momentum intensified sharply as President Donald Trump arrived in Beijing for face-to-face meetings with Chinese leader Xi Jinping, accompanied by a delegation of prominent American business figures.

Alibaba Leads the Charge Despite Earnings Miss

E-commerce heavyweight Alibaba climbed 8% on the day, even after morning earnings results missed analyst estimates on most measures. The broader iShares China Large-Cap ETF gained around 2.5% in sympathy.

Options market activity in Alibaba was striking. Roughly five times as many call contracts changed hands as puts. Of approximately $160 million in options premium traded by midday, nearly 90% sat in bullish call positions, according to data cited by CNBC.

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China Internet ETF Sees Massive Call Volume

The KraneShares China Internet ETF ranked among the ten most actively traded securities by options volume for much of the session. More than 750,000 contracts traded, with calls accounting for $48 million of roughly $50 million in total premium.

The most popular single contract by volume was a 32-strike call set to expire Friday, signaling traders expect near-term gains to continue. Neil McDonald, CEO of trading platform Moomoo, told CNBC that retail traders have noticeably increased discussion around a potential short squeeze in the ETF alongside renewed momentum in Alibaba. He described the sentiment as a self-described “Trump effect,” reflecting optimism that improved diplomatic dialogue could unlock upside in Chinese technology names.

Ford Emerges as a Surprise Beneficiary

Perhaps the most unexpected winner in the session was Ford Motor, whose shares climbed 13% after a Morgan Stanley analyst flagged the automaker’s energy-storage licensing agreement with Chinese battery giant CATL as a potential positive catalyst. The deal drew fresh attention against the backdrop of softening trade tensions.

Options flow in Ford mirrored the broader bullish tone. Calls outpaced puts by more than five to one, and buyers outpaced sellers on the call side by roughly two to one. One notable position stood out: a trader paid $245,000 for 7,000 put contracts at a $16.85 strike expiring in January, effectively wagering the stock adds more than 25% from current levels before that date.

Background: Months of Lagging Chinese Tech

Chinese technology and internet stocks had broadly underperformed global peers for much of the past year, weighed down by regulatory uncertainty and persistent US-China trade friction. Wednesday’s session represented one of the most vigorous single-day recoveries in recent months, driven less by fundamentals and more by geopolitical optimism.

Whether the momentum holds will depend heavily on what concrete commitments, if any, emerge from the Beijing meetings in the days ahead.

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