Alibaba’s shares fell due to the arrest of a person named ‘Ma’ in China, the value decreased by $ 26 billion in a jiffy

Shares of Chinese giant e-commerce company and Internet company Alibaba fell up to 9 percent on Friday. The decline comes after reports of a man named ‘Ma’ being detained from the company’s headquarters in Hangzhou.

According to a report by China’s state-run TV channel CCTV, the man named ‘Ma’ was detained on suspicion of ‘collusion with foreign forces anti-China to promote isolation and protest against Chinese power’.

This news was carried by many other media houses and it went viral very fast. Due to not knowing much about the person, people mistakenly mistook this person named ‘Ma’ as ‘Jack Ma’, the founder of Alibaba. This led to panic selling of Alibaba shares in Hong Kong.

Also read- The ‘storm’ of selling in the stock market due to these 5 factors, Sensex-Nifty came down to a low of 2 months

Market value reduced to $26 billion

According to a CNN report, the market value of Alibaba dropped by $26 billion within minutes. However, after the clarification came from the company’s side, some recovery was seen in its shares. The former editor-in-chief of Global Times, another Chinese state media, said the first reports about the suspect were misleading.

Jack Ma’s firm Ant Group had brought the world’s largest IPO in the year 2020. However, just two days before the listing, Jack Ma withdrew this IPO after the intervention of Chinese officials. Since then, Jack Ma has rarely appeared in public.

During this, there have also been reports of a rift between him and the ruling Communist Party of China. Jack Ma is said to have made a statement in the year 2020 before the IPO, in which he criticized Chinese regulators, saying that their rules were hindering innovation. The Chinese government was very angry with this statement of his and since then he has greatly reduced his public appearance.

In the last one year, the Chinese government has taken a lot of strictness on its tech companies. The company is facing scrutiny from Chinese regulators for violating data privacy and anti-monopoly regulations.

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