Alibaba’s market capitalization evaporated $ 26 billion after rumors that a ‘person surnamed Ma’ was arrested

According to Bloomberg, shares of Alibaba plunged 9.4% in Hong Kong, wiping away about $26 billion of the company’s market capitalization. This comes shortly after China’s state broadcaster CCTV reported that authorities in Hangzhou, where Alibaba’s headquarters are located, had imposed restrictions on a person surnamed Ma.

CCTV’s two-sentence report on the suppression order against “a person surnamed Ma” has made many people restless. Reuters

However, according to newly updated information, Alibaba’s shares have gradually increased again after a statement from Hangzhou police said that the accused’s name had three characters, while the Chinese name of the accused had three characters. Jack Ma (Ma Van) consists of only two characters. However, CCTV’s two-sentence report earlier made many people restless, highlighting the unrelenting anxiety of investors over China’s tech sector after a tumultuous year. with a series of new regulations.

According to the Global Times, the person accused in the report is a director of hardware research and development at a company Information Technology. CCTV said that this person was imposed a mandatory restraining order on April 25, after being accused of inciting subversion of state power and other activities that endanger national security.

Since 2020, the Beijing government has been clamping down on every nook and cranny of the internet sector in the country, starting by targeting Jack Ma. Chinese regulators have abruptly halted the IPO of Ant Group, Alibaba’s financial subsidiary, before launching a broader campaign to rein in the growing internet companies.

Last month, Bloomberg, citing sources familiar with the matter, said that China’s Central Commission for Discipline Inspection (CCDI), the country’s top anti-corruption watchdog, is directly investigating Jack’s Alibaba connection. Ma and Chinese state-owned companies, particularly in the financial technology sector.

The Hangzhou city government, where Alibaba is also headquartered, was not immediately available for comment. An Alibaba representative also did not immediately respond to requests for comment.