Chinese stocks have experienced a significant rally, with the FTSE China A50 Index ($FXI) having its best week since 2010, increasing by 25% over the last seven sessions and up 19% this week. Alibaba ($BABA) also saw a remarkable performance, soaring 20% this week, marking its best performance and highest volume since early 2023. Over the last three months, Alibaba's stock has surged by 49%. Analysts suggest that the rally in Chinese stocks may just be beginning, with historical patterns indicating potential for continued gains. Cash-rich, high free cash flow Chinese large caps, such as Alibaba, are trading near 10 times earnings and are expected to see significant earnings growth in the coming years. The FTSE China A50 Index has outperformed the S&P 500 in 2024, with Alibaba expected to grow EPS by 11%-plus in the following two years.