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[Nueva York / Boston, 20 de Reuters]- Alibaba shares the same day after the founder of China Alibaba Group, Mr. Jacques Ma, first appeared in public on the 20th since October last year. However, there is a deep-rooted view among investors that the conflict between the company and regulators has not been resolved, and many are cautious about investing in Alibaba shares.
On the Hong Kong stock market on the 20th, Alibaba shares rose 8.5% when it was reported that Mr. Ma participated in the video conference for about 50 seconds. On the US stock market on the same day, Alibaba’s ADR (US deposit securities) increased by more than 5%.
Mr. Ma disappeared from the public on October 24 of last year. It was right after criticizing China’s regulatory system. His criticism deepened the rift between Alibaba and regulators, leading to the suspension of the large-scale re-listing (IPO) of Alibaba-affiliated finance company Ant Group.
Mr. Ma did not schedule late last year to avoid any notable action, according to people familiar with the matter. Inside Alibaba, we discussed when and how Mr. Ma should return to allay investor anxiety. It was concluded that it would be desirable to appear in public in the form of “part of Mr. Ma’s normal activities”, as doing something that stands out could enrage the government.
Mr. Ma has resigned from his position at Alibaba and has not appeared at the press conference, but he still has great influence on Alibaba and Ant.
Alibaba shares soared on the 20th, but many say that not all issues have been resolved.
“Only the Chinese government can reveal what Mr. Ma is doing,” said Reland Miller, chief executive of China Beige Book, a US consulting firm. “All we know is whether Mr Ma is running or hiding. Alibaba has not escaped the crisis. Things will get even worse in the future,” he said. Indicated.
The two investors who sold their shares on Alibaba note that they cannot consider reinvesting without additional information on Alibaba and the regulatory situation.
William Houston, founder of the investment advisory firm Bay Street Capital Holdings, California, said, “One of the most important criteria in making an investment decision is leadership. I have deep respect for Mr. Ma as a leader. Invested in Alibaba. ” “Just because Mr. Ma reappears, I don’t know what’s going on (on Alibaba),” he said.
Last year it cut Alibaba shares from 8% to less than 1% of its portfolio. The postponement of Ant’s IPO has created extreme uncertainty and Alibaba has decided that it will not be a smart investment destination.
David Kotok, Chairman of Cumberland Advisors (Florida), also owned Alibaba shares last year, but sold his shares following the postponement of Ant’s IPO. “If things go like this, we can’t decide where to invest through a securities analysis. ordinary. We are attentive. “
Uncertainty surrounding Alibaba remains strong, with Alibaba’s share price still below the pre-Ant postponement level.
Dennis Dick, the trader at Bright Trading, who owns Alibaba shares, bought put options to hedge the risk of a dip as speculation spread about Ma’s whereabouts. After that, after receiving reports that the Mr. Ma was safe, canceled the option transaction and continues to hold shares in Alibaba.
Some say it would be better for China to allow Alibaba to prosper.
Harry Broadman, a partner at consultancy Berkeley Research Group, said: “When it comes to investor reactions to Alibaba share prices, if the Chinese government is rational, it will infiltrate the Chinese geese that lay eggs. gold”. It will not be wise to put it. “
