A mix-up by the Alibaba founder caused the tech company’s shares to crash.
(Photo: Aly Song)
Hong Kong Investors in China are concerned: Beijing has been taking action against technology companies in the country for a year. The market reaction to the supposed fate of Alibaba founder Jack Ma showed how nervous investors are on Tuesday.
The company’s shares fell as much as 9.4 percent at times in Hong Kong after state broadcaster CCTV reported that Hangzhou authorities had imposed restrictions on a person surnamed Ma. The company has its headquarters there. The report consisted of only two sentences.
The paper recovered most of those losses after Hangzhou police indicated that the person concerned was not Jack Ma. But in the meantime, $26 billion in market value had already been wiped out. Alibaba shares closed about 1.8 percent lower in Hong Kong.
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