Campaign against Jack Ma’s empire gathers momentum despite emergence after absence

After its first public appearance last week in the wake of the failure of Chinese giant “You Group”, Chinese business tycoon Jack Ma’s empire is again under attack by Chinese authorities in what appeared to be a crackdown on a man after many years of diligence.

The man’s appearance in an online video after a three-month absence sparked a partial return of investor confidence and sparked a rally in shares of Chinese trading giant “Alibaba” after long weeks of concerns about to the safety of the man who is an icon of the Chinese business community, according to Bloomberg.

However, concerns about human safety quickly dissipated on the rock of the new government decisions that appeared to be the target of them, hours after the appearance of Jack Ma, the People’s Bank of China, the bank. Central, issued a new anti-monopoly. decisions that affect the Alibaba Group’s payment unit would be damaged.

Jack Ma has not appeared in public since October 24 after criticizing Chinese financial authorities at a forum in Shanghai. Ten days later, authorities suspended the “You Group” offering in an unexpected surprise as markets prepared to receive the largest initial public offering in history of around $ 37 billion.

The cancellation prompted a sell-off of shares in Chinese giant Alibaba, which ultimately led Jack Ma to be stripped of the title of China’s richest person, after his fortune plunged 10% to $ 45.5 billion. dollars, according to data from Bloomberg, which tracks the fortunes of the rich around the world.

Previous reports indicated that the new legislation she put in place would cast a negative shadow on the company’s lending activity, which accounted for around 40% of its sales in the first half of last year, which would be reflected in the evaluation of the company.

Morningstar accounts show the Chinese giant has a consumer loan portfolio estimated at RMB 1.8 trillion, or roughly $ 271 billion, as new legislation requires the company not to exceed its portfolio. of loans in its budget of about 540 billion RMB.

Jack Ma, founder of Alibaba

The new legislation requires the company to bear around 30% of consumer loans granted to customers, while the company currently only supports around 2% and the rest of the funding sources come from banks.