Jack Ma Christmas Eve is not safe Ali evaporated 700 billion shares fell more than 15%

Jack Ma‘s Christmas Eve, not so peaceful! US stock Alibaba fell more than 15% and its market value evaporated more than 700 billion RMB.

The Christmas Eve (24th) before Christmas this year was an extremely uneventful day for Jack Ma. On that day, Alibaba Group was formally filed for investigation. Affected by this, Ali’s stock price plunged that day, the U.S. stock Alibaba fell more than 15%, the market value evaporated more than 700 billion yuan.

After the U.S. stock market opened on Dec. 24 EST, Alibaba’s share price opened over 10% lower, and then the decline continued to expand, and as of press time, the decline has exceeded 15%, the largest single-day decline ever. The market value evaporated more than $110 billion, equivalent to 700 billion yuan.

Vey-Sern Ling, an analyst at Bloomberg Intelligence, noted that the Chinese Communist Party’s investigation into Alibaba has sent a “warning that the winds have shifted” and that Ali’s business is facing long-term headwinds.

In addition, Alibaba’s stock market in Hong Kong has also gone down, the 24th Hong Kong shares fell by more than 8%. Market analysts believe that the Chinese Communist Party regulator’s formal investigation into Alibaba’s alleged monopolistic practices is an important reason for the plunge in Ali’s stock price.

On Dec. 24, Beijing time, several Chinese party media reported that the General Administration of Market Regulation (GAMR) had opened a case against Alibaba Group Holdings Ltd. for alleged monopolistic practices such as “choosing one over the other”.

Mr. Qian, a Nanjing scholar, told Free Asia that the authorities’ crackdown on Alibaba lacks fairness, that the Internet platform is cheaper and more convenient for transactions, and that the Internet industry is a monopoly due to competition, not because of financial resources, much less administrative means. “It’s actually healthy for the market economy.”

Song Qing, an insider in the Internet finance industry, said, “The case must be filed with results, and it should be the intention of the top management.”

“Half a month ago, programs about nationalization of Ant and nationalization of Ali have been deliberately put out. Those programs are with red-headed documents.” Song Qing believes that Alibaba is now under investigation and the authorities have the intention of killing the chicken for the monkey.

This follows news that a central investigation team was already in Alibaba as early as the end of November, and also in Tencent, Meituan and other giant dot-com companies.

The Wall Street Journal reported on Dec. 20 that Chinese billionaire Jack Ma, embattled by the crackdown, tried to salvage his relationship with Beijing by offering to hand over part of his stake in Ant Group to Communist authorities, but was rejected.

According to sources familiar with the matter, Ma had stated when interviewed by regulators on Nov. 2 that Ant’s platform could be taken away whenever the country needed it.

According to French commentator Wang Longmeng, Ma wanted to hand over part of Ant Group’s equity and break his arm to survive, but it will certainly not work.

On December 18, Ant Group took down all the Internet deposit products on its platform at the instruction of the Chinese Communist Party regulator.

Speaking to Free Asia, Wang Longmeng analyzed that although Ma conceded, he could not keep the peace, and that the CCP wants not just some of Ma’s interests, but all of them.

A government adviser in Beijing also said the chances of nationalizing at least part of the Ant Group are not zero.

Wang Longmeng said the outside world has long believed that Ma incurred retaliation for comments that angered Xi Jinping, but in fact, when analyzed in the big picture, this is the CCP’s overall policy of harvesting powerful private companies.

He believes that these private enterprises have been fattened up, and now that China’s economy is in the doldrums, it is time for the CCP to harvest them. He said that Ma Yun’s stream is “a success and a failure for the CCP”.

“The leader of the June Fourth Movement, Wuer Kaixi, pointed out that Ma and other Chinese companies are licking their chops to make profits, and their case of being harvested by the Communist Party at any time is enough to warn the West that China’s economy is firmly tied to power and is a destroyer of the international order.

The downfall of the Ant Group should make these richest people in China realize, and should also show the world clearly that it is impossible to steal a life by enduring humiliation, Urkaihi said.

At present, in addition to the General Administration of Market Regulation (GAMR) opening a case to investigate Alibaba, the Communist Party’s central bank, the CBRC, the SEC and the State Administration of Foreign Exchange (SAFE) will also interview the management of Ant Group for the second time.

According to Bloomberg, Ma has not appeared in public since Ant Group’s IPO was urgently called off by authorities. A person familiar with the matter said Ma was advised by the government to stay in China in early December.