Jack Ma | Alibaba Photograph:( WION Web Team )
The recent reports that Alibaba founder Jack Ma was in Europe has led to a six per cent jump in the company’s shares
When Alibaba founder, Jack Ma, delivered a blunt criticism of China’s financial system last October, few could have predicted the downward spiral that Alibaba Group Holding’s has witnessed.
According to a Bloomberg report, in just a year, the technology titan, Alibaba has lost around $344 billion in market capitalisation, the largest ever decline in shareholder value globally.
Also read | Jack Ma’s reported Europe trip boosts Alibaba shares
In the aftermath of the now-infamous speech, Beijing suspended the listing of its Ant Group company, which Ma had spun off from Alibaba.
In response to Jack Ma’s speech last year, Chinese authorities had not only pulled Ant’s IPO but also launched an antitrust probe against Alibaba, which ultimately resulted in a $2.75 billion fine for the company.
The value of Alibaba’s stock fell the most over the past year globally.
Also read | Alibaba unveils custom ARM-based server chip for cloud computing data centers
As Beijing stepped up its scrutiny of Alibaba’s practices and encouraged a reorganization of its fintech business, the company’s shares dropped to a record low of USD 139.63 on October 4th (three weeks earlier).
The recent reports that Alibaba founder Jack Ma was in Europe has led to a six per cent jump in the company’s shares. In the aftermath of regulatory crackdowns on his business empire last year, Ma has kept a low profile and largely remained out of the public eye.
Watch | Alibaba group founder Jack Ma resurfaces in Hong Kong
Since October 5th, the company’s stock has made a recovery of around 30 per cent. Despite this, the stock is still more than 40 per cent below its October 2020 peak.
The price of the company’s stock hovered around $174 on Monday, as opposed to the $306.87 a year earlier (26 October 2020).
Stay connected with us
© 1998-2019 Zee Media Corporation Ltd (An Essel Group Company), All rights reserved.