Billionaire Jack Ma 'turns around', not selling Alibaba shares due to low price

Two regulatory filings on November 16 showed that billionaire Jack Ma had prepared to sell 10 million shares of Alibaba worth an estimated $871 million. However, because the group's stock price fell below expectations, Jack Ma stopped selling, CNN on November 23 quoted a post by Alibaba's Chief Human Resources Officer Jane Jiang Fang, posted on the group's internal forum.

Mr. Jack Ma is still a shareholder of Alibaba even though he has left the chairman position.

The disclosure of the stake sale came on the same day Alibaba reported third-quarter earnings and announced it would scrap plans to spin off its cloud computing unit, in part due to unforeseen developments stemming from U.S. controls on chip exports to China.

Alibaba shares fell 9% in New York on November 16 and nearly 10% in Hong Kong on November 17, wiping about $20 billion off the company’s market value. Alibaba’s stock has fallen more than 10% this year.

The news of Mr. Ma’s share sale sparked speculation that the founder had lost faith in the group. However, Ms. Jiang said the two news reports happening at the same time were coincidental and urged employees to dispel the rumors. She said the transaction was part of a long-term plan outlined in August to help Mr. Ma invest in agricultural technology and welfare projects in and outside China.

“He believes Alibaba’s stock price is currently much lower than its true value and he will not sell,” Ms. Jiang said. Chairman Joe Tsai also wrote in a comment that he has full confidence in the group.

Mr. Jack Ma founded Alibaba in 1999. He stepped down as chairman in 2019, a year before he was targeted by authorities for comments critical of financial regulators and banks.

On November 17, in an interview with the South China Morning Post , a Hong Kong newspaper owned by Alibaba, Mr. Jack Ma said he was still very optimistic about the group's prospects despite plans to sell part of it.

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