Ma's $680B Alibaba Stake Boosts Market Value by $1T Overnight
January 24th will undoubtedly leave a significant mark in the annals of China's economic and financial history. The overnight surge of the FTSE China 3x Long ETF by 13.35% is an extremely rare occurrence, and various news items have been arriving one after another. Feizhu has summarized the following, totaling four major news items. Additionally, Alibaba's stock soared by approximately 8% in a single day. Those who previously claimed that Jack Ma was selling off his assets should now be silenced. So, what exactly happened?
Has "Feng Qingyang" returned?
In the early hours of January 24th, Alibaba, listed in the United States, experienced a dramatic increase of 7.85% overnight, with its market value growing by about 100 billion yuan. Amid the strength of Chinese concept stocks, the FTSE China 3x Short ETF surged by 13%, which can be described as a moment of triumph.
Alibaba took the lead, and it seems that "Feng Qingyang" Jack Ma has made a comeback.
Previously, due to various issues surrounding the IPO of Ant Group, Jack Ma was summoned for discussions. Subsequently, there were continuous rumors that Jack Ma was selling off his assets. However, it now appears that Jack Ma was not selling but rather buying.
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It turns out that, according to documents from the U.S. Securities and Exchange Commission (SEC), Alibaba's founder Jack Ma and Joe Tsai significantly increased their holdings in Alibaba throughout the year 2023.
As per the regulations of the SEC, institutional investors managing assets over 100 million U.S. dollars must submit reports on changes in their holdings every quarter.
Joe Tsai's family trust fund increased its holdings by approximately 1.1 billion yuan worth of Alibaba shares, and during the same period, Jack Ma was also significantly increasing his holdings.What is the total amount reached?
9.5 billion US dollars, equivalent to about 68.4 billion yuan, is indeed a huge sum of money.
There have been rumors that Jack Ma has been selling Alibaba's stocks, but now it seems that not only did he not sell, but he has been continuously buying.
This proves that many people's previous speculations were malicious, targeting Jack Ma. Alibaba, as the pioneer of China's e-commerce companies, has played an important role in the process of China's economic development.
After increasing his holdings, Jack Ma's stake surpassed that of Japan's SoftBank, officially becoming the largest shareholder of Alibaba. The strategy behind this move is worth everyone's careful consideration.
For hundreds of thousands of wholesalers and small and medium-sized enterprises, Jack Ma's increase in holdings once again demonstrates his personal charm and social responsibility. In addition to this, what other major strategic intentions and purposes does Jack Ma's increase in Alibaba have?
Jack Ma's intentions
For Alibaba, this move can be seen as a direct counterattack to the rumors that Jack Ma was selling Alibaba's stocks some time ago, and it has slapped the faces of those who were shorting Chinese companies with actual actions.
These people who spread false news and short Alibaba are either foolish or malicious.Stupidity lies in their belief that the Chinese economy might continue to weaken, especially that opportunities for the private economy will become increasingly scarce, which is impossible. We have long emphasized that the private economy is an important component of our country's economy.
Naughtiness is their understanding of the resilience of the Chinese economy and their awareness that Alibaba has been undervalued. Therefore, they release bearish news at the bottom to further strike at Alibaba, in order to get the bottom chips with blood.
However, Jack Ma's significant increase in holdings is meant to tell those who are bearish or short-selling.
He is very optimistic about the Chinese economy, very optimistic about the prospects of Alibaba, and has a firm belief in the company's development and strategy.
Rising to the level of the Chinese economy, Jack Ma's increase in holdings and long-term holding are optimistic about the development of China's private economy and also optimistic about the country's support for the private economy.
On a smaller scale, Alibaba has developed from an e-commerce company to a comprehensive enterprise covering finance, logistics, cloud computing, and many other fields.
With the continuous expansion and deepening of the company's business, the value of Alibaba's stock is also rising.
Jack Ma's increase in Alibaba's stock can also be seen as a reflection of his confidence and sense of responsibility towards the company.
As an entrepreneur, Jack Ma knows that the success of a business is inseparable from the joint efforts of the team and the support of society. Therefore, his choice to increase his holdings is also an expression of his loyalty to the company and his concern for his employees.
We should not ignore Jack Ma's personal feelings either. As a successful entrepreneur, Jack Ma has a deep affection for Alibaba.He once said: "I have dedicated everything I have to Alibaba." Increasing his stake in the company may be his way of expressing his emotions and commitment to the company.
The significance of Jack Ma increasing his holdings in Alibaba affects more than just Alibaba itself.
In fact, it affects the entire market's confidence in the economy.
To put it bluntly, the irrational decline currently faced by China's A-shares, Hong Kong stocks, and companies listed abroad is fundamentally due to a lack of confidence in China's economy.
Top entrepreneurs like Jack Ma and Joseph Tsai, who start repurchasing shares in their own companies, also bring top-level confidence to everyone.
Therefore, when the economic situation stabilizes and improves, confidence becomes the most critical and core element in the entire financial market, and our country has also done a lot of work in various aspects.
This also indirectly proves that betting against China's economy will inevitably be severely punished. In recent days, multiple departments have made dense statements to boost confidence, and the reversal of the capital market has already been triggered.
Reversal of the capital market?
The State Council, the State Financial Regulatory Administration, the China Securities Regulatory Commission, the Supreme Court, and other multi-level linkages have successively made statements to stabilize the financial market.
Firstly, the State Council emphasized the need to further improve and perfect the basic systems of the capital market, pay more attention to the dynamic balance of investment and financing, vigorously enhance the quality and investment value of listed companies, increase the entry of medium and long-term funds into the market, and enhance the market's inherent stability.This significant deployment not only clarifies the direction for the development of the capital market but also sends a strong signal to the market:
That is, the state will go all out to maintain the stability and prosperity of the capital market.
We need to further strengthen the supervision of the capital market, adopt a "zero tolerance" attitude towards illegal and non-compliant behaviors, and create a standardized and transparent market environment.
At the same time, more powerful and effective measures should be taken to focus on stabilizing the market and confidence.
As an important part of the national economy, the stability and prosperity of the capital market are of great significance to the development of the economy and society.
Secondly, the National Financial Regulatory Administration, on January 24, at the financial industry development forum, Li Yunze, the director of the National Financial Regulatory Administration, stated that the overall operation of China's mainland financial industry is stable and risks are controllable, and he is fully confident, has the conditions, and has the ability to maintain the healthy and stable development of the financial industry.
Then there is the China Securities Regulatory Commission (CSRC), the CSRC stabilizes market expectations from five aspects.
The core is to comprehensively accelerate the construction of a modern capital market with Chinese characteristics.
Firstly, we need to further promote market diversification to improve market depth and breadth.
Based on various financial products such as stocks, bonds, and futures, we will introduce more derivative tools that meet market demand and are controllable in terms of risk.This not only meets the diversified investment needs of investors but also attracts overseas funds to invest in China, enhancing the international influence of our country's capital market.
Secondly, strengthen regulation. As the number of derivative tools increases, market risks are also accumulating. Regulatory authorities need to strengthen market monitoring to detect and prevent risks in a timely manner.
At the same time, it is necessary to strengthen education and guidance for investors to raise their awareness of risks and prevent excessive speculation.
Thirdly, improve laws and regulations. Rule of law is the cornerstone of the healthy development of the capital market.
We need to further improve relevant laws and regulations to provide clearer and more operable rules for the market.
This is not only conducive to protecting the rights and interests of investors but also effectively regulates the behavior of market entities.
Fourthly, promote marketization. We need to further promote the marketization of the capital market, break intervention, and let the market play a decisive role in resource allocation.
At the same time, it is necessary to optimize mechanisms such as issuance, trading, and delisting to improve market efficiency.
Fifthly, strengthen international cooperation. In the context of globalization, China's capital market should actively integrate into the international market and strengthen exchanges and cooperation with international capital.
By participating in international competition and cooperation, we can learn and draw on advanced international experience to enhance the international competitiveness of China's capital market.From these five points, we can observe that the regulatory measures have been systematically addressed from various aspects, including improving the quality of listed companies, perfecting hedging tools, strengthening the supervision of derivatives, improving the construction of financial legal systems, refining the delisting process, and international capital, among others.
Looking at the statements from multiple departments, it is evident that this time we have made systematic and comprehensive arrangements for the financial market, especially the stock market, which has significantly boosted people's confidence.
Jack Ma and Joe Tsai's increase in their holdings of Alibaba shares has also enhanced everyone's confidence. What the market lacks is not capital, but confidence.
In this financial battle, the most difficult times may have already passed. Our economic growth remains robust. The principle of extremes meeting is an eternal truth. Let's wait and see!
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