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Alibaba Group Holding Ltd (BABA) – Get the report Shares traded higher on Tuesday amid reports that the co-founder of Asia’s most valuable technology company, Jack Ma, is not absent after allegedly falling out of favor with Chinese executives.
Ma, who has not been seen or made public comments since November, drew President Xi Jinping’s ire with a speech in October that attacked the government’s role in mitigating creativity and innovation in the technological sector. Since then, government officials have launched an antitrust investigation into Alibaba, the internet giant he co-founded in 1999, and crushed IPO plans for his online banking subsidiary, Ant Group.
CNBC’s David Faber, however, reported on Tuesday that Ma was not “missing” in the sense that her location is unknown, but rather “lying low” in terms of public appearances in hopes of being able to escape the government. current. backlash.
“He’s not missing,” Faber said. “I haven’t seen Jack Ma in a while, but I’ve interviewed him a few times, but what I can tell you is that he’s very likely Hangzhou, where Alibaba is headquartered, is less visible, on purpose … but that doesn’t mean it’s gone.
“He was not captured, he was not taken and the government is not expected to act on him in any way,” Faber said.
Alibaba’s U.S.-listed shares rose 4.2% at the start of Tuesday to change hands to $ 237.40 each following Faber’s comments, which he attributed to a source close to Ma .
China’s State Administration for Market Regulation launched its investigation into Alibaba on Christmas Eve and demanded a meeting with officials at its subsidiary Ant Group Co., as part of a wider campaign to fight against anti-competitive practices in Internet commerce, including alleged pressure from merchants to list their wares on a single online platform.
The investigation follows last month’s dramatic suspension of Ant Group’s planned $ 37 billion IPO and billionaire Ma’s summons by government officials, as well as the People’s Bank of China, to ” advising on the health and stability of the financial sector “.
Alibaba shares were also supported on Tuesday by the New York Stock Exchange’s decision to reverse an earlier threat of delisting of three China-based telecommunications stocks following an executive order by President Donald Trump banning US investment in companies linked to the country’s army.
Trump also signed a law last month – The Holding Foreign Companies Accountable Act – that could remove China-based companies from U.S. stock exchanges if they don’t comply with U.S. auditing standards.
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