Jack Ma buys Alibaba shares in show of support for the struggling empire international business news
Alibaba Group Holding Ltd. gains the most in six months after billionaire co-founder jack ma Bought stock, a much-needed boost for a company facing internal turmoil and stock market crash,
from china e-commerce leader Hong Kong gained as much as 6.7%, after climbing 8% in New York. Ma, the once outspoken billionaire who retreated from public view after Beijing’s clampdown in 2020, bought about $50 million of stock last quarter, a person familiar with the situation said. Chairman Joseph Tsai – a longtime confidant of Ma – also made a separate purchase of about $150 million. This is his first such purchase since 2017.
The revelation came as doubts persist about China’s post-Covid transition, sending markets into decline, dealing a blow to the world’s No. 2 economy. Alibaba lost more than 40% of its value in the past year as the company that once defined Chinese e-commerce lost market share to PDD Holdings Inc. and underwent a management reshuffle. Tuesday’s U.S. rally coincided with a 5% gain in a key gauge of U.S.-listed Chinese stocks after Bloomberg reported that Beijing is preparing a $278 billion market rescue package.
Alibaba’s troubles, along with the sudden departure of former Chief Executive Officer Daniel Zhang, have fueled speculation that Ma himself might join his company more directly. The co-founder has increased public activity in recent months, though it’s a far cry from the days when he was a regular on the global conference circuit.
“Given the image of Jack Ma, it could be iconic and it could boost market confidence in the short term. And this should be the first purchase made by Jack Ma eight years ago,” said Willer Chen, an analyst at Forsyth Barr Asia Ltd.
“But for Alibaba, the big question is still how the company will compete with PDDs and achieve its own growth,” he said.
Arguably China’s best-known entrepreneur, Ma broke years of silence to issue a call to arms for employees in November. He took to an internal message board to urge Alibaba to “correct its course” and praised PDD, which is gaining market share with the hit shopping app Teemu. Ma said that with determination and hard work, Alibaba can be successful again.
It is unclear whether Ma’s move, first reported by The New York Times, marks a change from a years-old stance. The billionaire has gradually sold off his stake in the company while focusing on his projects, including philanthropy. He disclosed a plan on Nov. 21 to offload 10 million shares worth about $870 million, according to last year’s filing.
But Ma’s buyback comes at a turning point for the company that was once the top company in China and one of the world’s largest companies by market value.
Tsai and new CEO Eddie Wu are attempting to revitalize Alibaba after its dominance ended following a series of missteps and regulatory scrutiny. The Chinese corporate icon, which has weathered a post-Covid consumption slump and years of government crackdown, now faces the rise of rivals including PDD and ByteDance Ltd.
Last year, the company unveiled a plan to split itself into six parts — then followed through on it, ousting Zhang. It scrapped the $11 billion spinoff of its cloud division, which some investors wanted, announcing that the company needed a “reset.”
Tsai’s Blue Pool Management bought about 2 million shares of Alibaba’s U.S.-traded shares in the fourth quarter, worth about $152 million, according to the filing. It was the first time Tsai’s fund has bought Alibaba stock since at least the last quarter of 2017, according to a review of regulatory filings.
Ma, who left his role as executive chairman in 2019 but is still a major shareholder, bought $50 million worth of stocks in the quarter, the Times reported, citing a person with knowledge of the matter.
“This will trigger short-covering but will keep long-term investors away,” said Steven Leung, executive director of UOB’s Hian. “Long-term liquidity will return only as the earnings outlook improves and policy risks reduce.”
from china e-commerce leader Hong Kong gained as much as 6.7%, after climbing 8% in New York. Ma, the once outspoken billionaire who retreated from public view after Beijing’s clampdown in 2020, bought about $50 million of stock last quarter, a person familiar with the situation said. Chairman Joseph Tsai – a longtime confidant of Ma – also made a separate purchase of about $150 million. This is his first such purchase since 2017.
The revelation came as doubts persist about China’s post-Covid transition, sending markets into decline, dealing a blow to the world’s No. 2 economy. Alibaba lost more than 40% of its value in the past year as the company that once defined Chinese e-commerce lost market share to PDD Holdings Inc. and underwent a management reshuffle. Tuesday’s U.S. rally coincided with a 5% gain in a key gauge of U.S.-listed Chinese stocks after Bloomberg reported that Beijing is preparing a $278 billion market rescue package.
Alibaba’s troubles, along with the sudden departure of former Chief Executive Officer Daniel Zhang, have fueled speculation that Ma himself might join his company more directly. The co-founder has increased public activity in recent months, though it’s a far cry from the days when he was a regular on the global conference circuit.
“Given the image of Jack Ma, it could be iconic and it could boost market confidence in the short term. And this should be the first purchase made by Jack Ma eight years ago,” said Willer Chen, an analyst at Forsyth Barr Asia Ltd.
“But for Alibaba, the big question is still how the company will compete with PDDs and achieve its own growth,” he said.
Arguably China’s best-known entrepreneur, Ma broke years of silence to issue a call to arms for employees in November. He took to an internal message board to urge Alibaba to “correct its course” and praised PDD, which is gaining market share with the hit shopping app Teemu. Ma said that with determination and hard work, Alibaba can be successful again.
It is unclear whether Ma’s move, first reported by The New York Times, marks a change from a years-old stance. The billionaire has gradually sold off his stake in the company while focusing on his projects, including philanthropy. He disclosed a plan on Nov. 21 to offload 10 million shares worth about $870 million, according to last year’s filing.
But Ma’s buyback comes at a turning point for the company that was once the top company in China and one of the world’s largest companies by market value.
Tsai and new CEO Eddie Wu are attempting to revitalize Alibaba after its dominance ended following a series of missteps and regulatory scrutiny. The Chinese corporate icon, which has weathered a post-Covid consumption slump and years of government crackdown, now faces the rise of rivals including PDD and ByteDance Ltd.
Last year, the company unveiled a plan to split itself into six parts — then followed through on it, ousting Zhang. It scrapped the $11 billion spinoff of its cloud division, which some investors wanted, announcing that the company needed a “reset.”
Tsai’s Blue Pool Management bought about 2 million shares of Alibaba’s U.S.-traded shares in the fourth quarter, worth about $152 million, according to the filing. It was the first time Tsai’s fund has bought Alibaba stock since at least the last quarter of 2017, according to a review of regulatory filings.
Ma, who left his role as executive chairman in 2019 but is still a major shareholder, bought $50 million worth of stocks in the quarter, the Times reported, citing a person with knowledge of the matter.
“This will trigger short-covering but will keep long-term investors away,” said Steven Leung, executive director of UOB’s Hian. “Long-term liquidity will return only as the earnings outlook improves and policy risks reduce.”
