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Video:  How Alibaba's Transformed Swathes Of Rural China

How Alibaba's Transformed Swathes Of Rural China

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If you want to know why the Chinese government is keen on e-commerce giant Alibaba, look no further than Beishan - one of China's many "Taobao" villages - farming communities transformed thanks to new job opportunities created by Alibaba's consumer-to-consumer site of the same name. For years, the town was called "clay oven bread" village due to its long baking tradition. However, everything changed when e-commerce giant Alibaba was introduced. Entrepreneur Lv Zhenhong used to sell sesame buns, earning $8,000 a year. Today his company BSWolf generates $8 million in annual sales of outdoor gear. His $16 sleeping bags are a best seller on Taobao.

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Investors seem to love new gadgets. Apple, for instance, has seen its stock jump more than 34% in six-month period leading up to Friday's iPhone 6 launch. Then there is GoPro, the best-selling video-camera brand in the U.S., according to NPD. The company has said nothing of its next release—aside from Chief Executive Nick Woodman calling it "a big one." Investors have taken him at his word, bidding the stock up nearly 80% since he made that statement at an investment conference last month.

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