Once the news broke that Alibaba was interviewed by the General Administration of Supervision for alleged monopolistic practices, its U.S. and Hong Kong shares plunged in response, and Alibaba’s market value fell below US$600 billion. Jack Ma‘s value has also shrunk. Netizens commented on Ma’s previous statement that he was “not interested in money”. At the same time, Alibaba’s rival Jindo’s share price rose.
According to Deutsche Welle, Chinese e-commerce giant Alibaba had an uneventful Christmas Eve, with its share price plunging. According to Sina Finance, Alibaba opened nearly 11 percent lower this Thursday (Dec. 24) at local time in the U.S., and then its shares continued to slide, dropping 13.34 percent by the end of the day, with its market value falling below $600 billion. According to Forbes’ estimates, Alibaba co-founder Jack Ma’s fortune shrank by $4 billion in one day on Thursday, now down to $57.3 billion.
The reason for the share price drop was the announcement by China’s State Administration of Market Supervision that it had launched an investigation into Alibaba Group that day.
In addition to the U.S. stock, Alibaba’s Hong Kong shares also plunged more than 8% in response. A report by Taiwan‘s Central News Agency noted that Alibaba’s Hong Kong shares have fallen for several days under the gloom of anti-monopoly laws, with a cumulative drop of 11.6%.
The plunge in Alibaba’s share price drew a lot of attention from Chinese netizens, with some commenting on Ma’s previous interview in which he said he was “not interested in money” and that “the happiest time was when I was teaching at school with $80 to $90 a month. A netizen said on Weibo, “Ma said he has no interest in money, I don’t think he will mind too much.”
While Alibaba’s U.S. stocks plunged, its rival, Poundland’s shares in the U.S. rose all the way. Sina Finance reported that Poundudo rose by about for 9% on Christmas Eve, and its market value has nearly $190 billion.
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