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Chinese Tech Stocks: Curious Drop in Alibaba Stocks: Jack Ma Confusion | news

Tense mood among tech companies
Alibaba was able to reduce the losses caused by the collapse of prices during the trading day
Chinese technology stocks between depreciation and recovery

According to state broadcaster CCTV, Hangzhou authorities have imposed restrictions on a person named “Ma”. As it turns out, the restrictions are expected to target Alibaba co-founder Jack Ma, who has actually been targeted by authorities since his statements at the latest in 2020 and whose corporate headquarters are in Hangzhou. However, Jack Ma retired from daily activities some time ago and has only rarely appeared in public since Alibaba’s subsidiary Ant Group was blocked from public activity in October 2020. The person actually forced on April 25 was the director of an IT hardware company and was accused of endangering national security, the state-run Global Times reported without citing the sources.
Investor reaction once again illustrates the tense atmosphere in the tech environment, said Willer Chen, an Asian analyst at Forsyth Barr. The market is currently too sensitive. Because the two-line note immediately triggered a 9.4% collapse of Alibaba’s shares in Hong Kong. The company lost a stock market value of US $ 26 billion. However, Alibaba newspapers were able to recover most of the losses before the market closed, down 1.8%.

Advantage for Chinese tech stocks?

From its all-time high on the New York Stock Exchange in late October 2020, Alibaba’s price has dropped nearly 70%. The analysts’ price targets were recently revised downwards. After the massive losses in Chinese tech stocks in recent months, however, there has been a glimmer of hope recently. The Chinese Communist Leadership Political Bureau announced after its April 29 meeting that it would “promote the healthy development of the platform economy, complete the special rectification of the platform economy, implement normalized supervision, and introduce specific measures to support the standardized economy and the healthy development of the platform economy. ”Tech stocks were thus able to initiate a recovery. It remains to be seen whether the time of tight restrictions is over.

Financeen.net editorial staff

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