Random guy named Ma gets detained, Alibaba loses USD 26 billion
Sorry Shakespeare, all IS in name. At least USD 26 billion are. Jack Ma, the Chinese e-commerce tycoon may have suffered a tiny hiccup if he checked his net worth on Tuesday. There was a drop in his wealth by USD 26 billion. This was caused due to rapid fall in share prices of Alibaba, Jack Ma's e-commerce behemoth. How? Why? Where? Read on.
Jack Ma has been at the receiving end of Chinese State's crackdown lately. The tech tycoon was also reported to have fallen out of favour with powerful Chinese politicians for some time.
It is perhaps why, when Chinese State broadcaster CCTV reported that 'Ma' was detained, markets shuddered. Alibaba is based in the city of Hangzou in China. The detainment of 'Ma' took place in this very city, reported media.
What followed was a share market bloodbath in which Alibaba lost USD 26 billion of its market value. Investors naturally scrambled to sell their shares fearing 'Ma's arrest spelled doom for the company.
Amid all the crazy frenzy, The Global Times' former Editor-in-Chief Hu Xijin clarified on China's Twitter-like platform Weibo that the person detained was a random guy with the surname 'Ma' and NOT Jack Ma, the tycoon.
The Global Times is a Chinese state-run tabloid. To further calm the frenzy, the tabloid said that the detained Ma was born in 1985 while it's a public knowledge that Jack Ma was born in 1964.
The clarification gave a filip to Alibaba's shares and the company recovered most of the loss by end of the day.