Stocks of major Chinese companies experienced a significant boost on Tuesday as reports emerged that the country's policymakers were contemplating measures to bolster the struggling stock market. Amid discussions of a potential spending spree, several prominent Chinese tech stocks led the rally, outpacing gains in the broader market.

Alibaba Group, the Chinese e-commerce giant, saw its shares surge by 6.9%, while Baidu, the country's leading search engine, jumped 6.7%. JD.com, another major digital retailer, climbed as much as 6.2% during Tuesday's trading session.

China's stock market has been grappling with a downward spiral for the past year, with the CSI 300 Index, comprising the top 300 stocks on the Shanghai and Shenzhen Stock Exchanges, plummeting over 20% in the preceding 12 months. This decline marks its third consecutive year of losses, reaching a nearly five-year low. Other mainland China indexes have suffered similar drops.

Given that China is the world's second-largest economy, it has faced numerous macroeconomic challenges, including plunging real estate values, mounting debt, and deflation. In response, Chinese Premier Li Qiang stated during a meeting with the state council that the country intends to take decisive actions to restore investor confidence and stabilize the market.

In an effort to kickstart these initiatives, China plans to deploy approximately ¥2 trillion (around $278 billion) held by state-controlled companies to invest in Chinese stocks. Additionally, an allocation of another ¥300 billion ($42 billion) from local sources is being considered for further investment.

It is worth noting that China's economy has struggled to rebound since the pandemic, leading to a slump in consumer spending and high unemployment rates. This situation has posed challenges for companies heavily reliant on robust economic conditions, such as Alibaba, JD.com, and Baidu.

Despite the uncertainties, these stocks currently trade at attractive valuations. Each of them carries a price-to-sales ratio of 2 or less, indicating that they may be undervalued. Moreover, any potential economic improvement in China could stimulate consumer spending, ultimately benefiting these companies.

However, investing in China also entails additional risks, and investors should allocate their investments appropriately and maintain a well-diversified portfolio. While the recent government efforts to stabilize the stock market may have initially pleased investors, the long-term impact remains to be seen.

It is important to note that the Motley Fool Stock Advisor analyst team has not identified Alibaba Group as one of the 10 best stocks to invest in. The team has highlighted other stocks that they believe could potentially yield significant returns in the future.

As the situation continues to evolve, investors will closely monitor the Chinese government's actions and their potential effects on the market.