Alibaba jumped 5% on Tuesday after CNBC’s David Faber reported that its billionaire founder Jack Ma is not missing, but is instead lying low.
On Monday, Alibaba fell as much as 3% following a string of reports that Ma hasn’t been seen in public for more than two months and had been abruptly replaced on a business TV show he was scheduled to judge.
Ma’s Alibaba and Ant Group have been subject to increasing regulatory pressure from the Chinese government just weeks after Ma made statements that were critical of the country’s financial regulatory system.
In recent months, Ma’s Ant Group and Alibaba have come under increasing regulatory pressure from Chinese authorities. In the past events, Ant Group planned IPO scrapped after the Chinese government amped up its regulatory pressure on the fintech giant. The company is now grappling with new rules that could potentially alter its business model.
Time will only tell whether Chinese government mounting pressure how much can change the ALibaba business model. Nobody is sure of what exactly happened in JackMa case but it’s evident that Alibaba Growing clout and JackMa outspoken nature has not been liked by the Chinese Government.