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But for investors who have been waiting to see Jack Ma at least in the corner of their eye for months, the businessman’s participation in a live video conference on Wednesday was enough to raise $ 58 billion. Dollar sighed in relief. The market value of Alibaba Group Holding Ltd. increased slightly after a video was posted online in which Mr. Ma talks to a group of teachers. This is his first public appearance since he disappeared from the air at the end of last year.
Much of the future of China’s most famous businessman remains uncertain. But analysts say Wednesday’s video is a sign that worst-case scenarios, such as Ma’s imprisonment or the government takeover of his company, are likely to recede at this point. It is unlikely that Mr. Ma would have attended the event without Beijing’s tacit consent; State media, including the Global Times, published excerpts from his speech or articles about his performance.
“There is still a lot of uncertainty about what the regulators will do next, but that means Jack Ma’s status is much better than many have speculated,” said Wang Kecheng, a professor at the Chinese University of Hong Kong.
Ma’s speech focused on philanthropic issues, such as closing the income gap and revitalizing China’s rural areas, two of Xi Jinping’s top communist priorities. While this is far from a “mea culpa,” these comments were in stark contrast to Ma’s last public comments in October, when the billionaire criticized China’s state banks and regulators in an unusually harsh manner.
Within days of this now infamous speech at the Bund summit in Shanghai, the government torpedoed Ma’s plan to publicly offer shares in Ant Group Co. (the largest initial share sale in the world). In the weeks that followed, authorities called for an investigation into Ant’s business and launched an antitrust investigation into Alibaba.
It would be naive to expect Beijing to reverse its plans to tighten regulation on Ant, Alibaba and other Chinese high-tech giants as Ma Ma’s tune shifts. But Wednesday’s market reaction suggests investors are beginning to assess risk. of an agreement that would pose a serious threat to the richest entrepreneurs and the most innovative companies in the country.
“Alibaba has yet to be released, but at least it is clear that the antitrust investigation is not aimed at punishing Jack Ma,” said Zhang Fushen, a senior analyst at PD Fortune Asset Management in Shanghai.
Speculation about Ma’s whereabouts has intensified in recent weeks, when it became clear that he was not participating in a Shark Tank television show that he had created. The Chinese authorities have repeatedly detained billionaires who have criticized the Communist Party in the past.
According to Justin Tang, head of Asian research at United First Partners Singapore, Ma’s performance appears to have been carefully calibrated. The video conference was part of an annual event in which Mr. Ma honors rural teachers. Having once worked as an English teacher, Mr. Ma solemnly spoke of the need to provide better educational opportunities to the poorest areas of China.
“We recently discussed and thought with colleagues. We have made a firm resolve to dedicate ourselves to philanthropy in education, said Mr. Ma. “A generation of our entrepreneurs is responsible for the hard work of revitalizing rural areas and for the common good.”
It was “a great opportunity for Jack to reappear in the public spotlight,” Tang said. “Ordinary people will see Jack as a modest high school teacher, not an arrogant businessman who does not know his place. The whole scene allowed him to show an uncontrolled sensitivity. “
Ant, controlled by Ma and partly owned by Alibaba, confirmed the authenticity of the video, but declined to comment further.
Ant experienced a “significant shock” after Beijing suspended its listing on the stock exchange, an event that was predicted to value the company at more than $ 300 billion. said James Anderson, a partner at Alibaba investor Baillie Gifford. “Obviously the company is now less likely to be extremely profitable,” he told Bloomberg TV.
Investors are now wondering to what extent Beijing will continue to interfere in the affairs of Ant, Alibaba and their colleagues. Early signs suggest that regulators are in no rush to give up. Just hours after Ma’s speech, China’s central bank announced draft rules aimed at limiting market concentration on online payments, which could deal another blow to Ant and rival Tencent Holdings Ltd.
The move is part of a large-scale campaign to curb a generation of Chinese tech giants that Beijing sees as excessively controlling the world’s second-largest economy.
Despite regulatory action, Alibaba supporters at companies such as Amber Hill Capital Ltd. and Pegasus Fund Managers Ltd. have argued that reducing concerns about Ma’s status may be enough for the company’s shares to trade. electronic back up. . That would mean stocks listed on the Hong Kong Stock Exchange would rise 15 percent on Wednesday.
Thursday at 9:31 pm Alibaba fell 2.2 percent in local time.
Mitchell Green, founder of Lead Edge Capital, which owns shares in Alibaba, predicts that in the near future, Ma will focus on charity work that he started a few years ago. Green said he was still optimistic about the long-term prospects for both Alibaba and Ant. “Both companies are very important to the Chinese economy and its people,” he stressed.
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