Alibaba (NYSE: BABA) – Why the reappearance of Jack Ma is not enough to calm Alibaba investors

Alibaba Group Holding Ltd (NYSE: BABA) co-founder Jack Ma reappeared in public view on Wednesday, pushing the company’s shares up 5.5% in New York City, but concerns persist over the company’s frayed relationship Chinese with its government.

Investors are looking to be more reassured about the regulatory environment surrounding the e-commerce giant. Here is what they say:

Just appearing is not enough: William Huston, Founder of Bay Street Capital Holdings, a California-based investment advisory firm, said: “We all know that just because he showed up … doesn’t necessarily explain what that is happening.” Huston’s company reduced its position in Alibaba from 8% of the portfolio to less than 1%, Reuters reported.

See Also: Alibaba Climbs 8.5% As Jack Ma Makes First Public Appearance In Months

“When you don’t know what to do in a changing situation like this, you can’t use traditional securities analysis to make decisions. We are standing by and watching, ”said David Kotok, chief investment officer at Cumberland Advisors in Florida.

The value of Jack Ma: Investors also value the leadership Ma provided to the Chinese conglomerate. Houston said, “One of our main criteria is leadership and we invest in Alibaba because I really respect Jack Ma as a leader.”

Alibaba still in hot water: The reappearance of the company founder does not mean that Alibaba is in the clear.

“Alibaba is not out of the niche, but at least it’s clear that the current anti-monopoly campaign is not about punishing Jack Ma,” said Zhang Fushen, senior analyst at Shanghai PD Fortune Asset Management, Al reported. Jazeera.

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Brock Silver, chief executive of Kaiyuan Capital, a Hong Kong-based private equity fund, noted that while Ma’s reappearance is a sign that her relationship with Chinese regulators has stabilized, it does not imply that “Ma’s corporate empire is worry-free. Singapore Straits Times newspaper reported.

“[Ma’s] reappearance can only be a good thing. But there is no point in speculating on the viability of an Ant Group listing at this point, ”said Wei Wei Chua, portfolio manager at Mirae Asset Global Investments Hong Kong, according to Straits Times. The investor was referring to Alibaba’s fintech arm’s suspended mega IPO that failed in November.

Price action: Alibaba shares closed up 5.5% at $ 265.49 on Wednesday and gained 0.1% in the after-hours session in New York.

Photo courtesy: World Economic Forum via Wikimedia