Alibaba shares hit 6-month high after Jack Ma cedes control of Ant Group, amid a broad rally in Asian shares

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After China reopened its international borders, shares of the e-tailer soared to a six-month high.

After news emerged over the weekend that founder Jack Ma was ceding control of his company, the shares of the tech giant jumped 9% to a six-month high. The stock lost 27% of its value in one year.

The face of China's Big Tech was once a high-profile jet-setting teacher named Ma. He gave a speech about China's financial regulatory system. His words angered the Chinese authorities, prompting intense regulatory scrutiny of his businesses.

According to the Financial Times, Ma had been living in Tokyo for six months.

On December 29th, China's Banking and Insurance Regulatory Commission approved an increase in the registered capital of the consumer finance arm of the company to over two billion dollars. "The market believes the governmental investment means that the conflict between Jack Ma and the authorities has come to an end", according to a note by the China head of Aequitas Research.

Positive sentiment in the country's tech sector was boosted over the weekend by a suggestion from a top Chinese central bank.

The 30 largest tech companies in Hong Kong are tracked by the Hang Seng Tech Index. The shares of NetEase and Tencent closed higher.

Asian shares went up on Monday. China's reopening boosted market sentiment after the country reopened international borders on Sunday, allowing incoming travelers to enter without any restrictions.

Hong Kong's Hang Seng Index closed 1.9% higher, while the Chinese mainland's two major stock markets gained ground.

South Korea's Kospi closed 2.5% higher, while Japan's Nikkei was up 0.9%. There was a public holiday on Monday in Japan.

Markets are bouncing back, thanks to China's reopening

The analysts wrote that there could be more upside.

"China's reopening momentum has been faster-than-market, and our own, expectations - though it has resulted in a temporary surge in new cases and depressed mobility, we think investors should or will "look through" and focus on an eventual economic and earnings recovery later in 2023,"

While sentiment is high amid China's economic reopening, some analysts warn that the ride may be bumpy as the country battles a massive surge in COVID-19 infections.

"While that is a positive step towards a longer-term growth recovery, the near-term risk of virus waves are put into question, which could be catalysts for jitters over the coming weeks."