In response to the recent sell-off of Alibaba Group Holding‘s shares, Jack Ma’s office has issued a statement expressing the Alibaba founder’s unwavering confidence in the company. Despite stepping down as chairman in 2019, Ma, through his family trust, remains a significant shareholder in one of China’s largest technology firms. The recent market movement follows an announcement from Ma’s JSP Investment and JC Properties trust units about their plan to sell Alibaba shares worth US$870 million in phases, starting November 21.
This decision to sell a portion of Alibaba shares is part of a pre-arranged plan established in August and does not indicate any reduction in Ma’s stake in the company. Ma’s office emphasized that the plan is a long-term strategy and clarified that no shares have been sold yet. The office also stated, “We believe the current stock price is far below its fair value,” underscoring Ma’s belief in the intrinsic value of Alibaba’s shares.
Despite the decline in Alibaba’s stock price, which saw nearly a 10% drop in Hong Kong, Ma’s office assures investors of his full confidence in the company. This assurance comes at a critical time when Alibaba’s cloud computing unit’s spin-off was halted, and the company reported a 9% revenue growth in its September quarter.
Alibaba, a key component of the Hang Seng Index with a substantial 7.6% weight, plays a significant role in the market. The latest developments and Ma’s ongoing support are crucial for investor sentiment, especially given Alibaba’s impact on the broader market.
Ma’s commitment to holding Alibaba shares, despite the phased sell-down, is a strong message to the market about his faith in the company’s future prospects. This move is seen as a strategic step rather than a lack of confidence in Alibaba’s future growth and valuation.