HONG KONGSHANGHAI, April 4 Reuters Foreign investors are steadily marching into China in the wake of Alibaba39;s plans to restructure, with money managers reckoning it is the latest sign the national leadership is turning friendlier to business as economic growth gains traction.

Exchange data shows net foreign buying of mainlandlisted stocks every day since Alibaba announced its intention to split up and float its business units last week, for a record quarterly total.

Investors have also turned positive on the company and the stock is up this year after heavy falls in 2021 and 2022.

The flow may be signalling a shift in sentiment among foreign investors who have been notably absent while China39;s markets and economy roared back to life after Beijing abruptly lifted its stringent zeroCOVID policy in December.

The MSCI China index gained 4.5 in March against a gain of only 2.8 for world stocks and the Shanghai Composite has just closed out its best quarter in more than two years, with a 5.9 gain.

Derrick Irwin, a portfolio manager at U.S. asset manager Allspring Global Investments, said the Alibaba breakup and founder Jack Ma returning to China appear part of an effort by the government to extend an olive branch to entrepreneurs.

This may reignite investment in the private sector, he said.

China has since late 2020 waged a crackdown on a broad range of industries, leaving startups and its biggest companies alike operating in an uncertain environment. It punished…