Alibaba shares plunged 9.4%, sending the company’s market value down by $26 billion, after state broadcaster CCTV reported that authorities in Hangzhou placed restrictions on a man named Ma.
Stocks bounced back after Hangzhou police clarified that the defendant’s first and last name were written in three Chinese characters. Jack Ma’s Chinese name consists of two characters.
“Investor reaction shows relatively weak tech sentiment,” said Willer Chen, an analyst at Forsyth Barr Asia Ltd. “I think the market is too sensitive to that.”
The defendant works as the director of research and development for hardware at an IT company, the state-run Global Times reported, citing unnamed sources. So-called “coercive measures” were taken against the individual on April 25, according to CCTV, after he was accused of inciting subversion of state power and other acts that threatened national security.
Such information, of course, excited investors. Earlier, regulators suspended the IPO of Ant Group Co., founded by Jack Ma, after he criticized the actions of financial regulators.
As a result, Alibaba shares fell only 0.2% to HK$101.90.
Source: ixbt
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
