Jack Ma and Joe Tsai Increase Investments in Alibaba Amid Market Struggles

Summary

    Jack Ma, renowned Chinese entrepreneur and co-founder of Alibaba (NYSE:), has been actively investing in the tech giant.

    Alibaba chairman Joe Tsai is also reportedly buying shares.

    The company’s U.S.-traded shares saw an investment of approximately $151 million in the fourth quarter.

    This increased activity from key figures suggests a shift in sentiment towards the company.

Jack Ma’s Investment in Alibaba

Famous Chinese businessman, Jack Ma, known for co-founding Alibaba (NYSE:), has reportedly been increasing his shareholdings in the tech behemoth, as the New York Times reports.

Ma’s escalated investments in the BABA shares signal a possible shift in sentiment, especially after his public spats with Chinese officials led to a decrease in his public visibility and marked his separation from Alibaba in recent years.

Other Stakeholders Buying Shares

Interestingly, even though Ma surrendered control over Ant Group, Alibaba’s fintech affiliate last year, he has now been reported buying Alibaba shares in tandem with Joe Tsai, the current chairman.

In the preceding few months, Joe Tsai has invested roughly $151 million in Alibaba’s U.S.-traded shares in the fourth quarter via his family investment operation, Blue Pool Management.

Jack Ma’s Continued Interest

Simultaneously, Jack Ma, despite stepping down as the executive chairman in 2019, remains a key shareholder and is said to have added $50 million worth of Hong Kong-traded stock during the same time frame.

Alibaba’s shares enjoyed a 5.6% increment in pre-market trading. Nonetheless, up till Monday’s closure, shares had gone down 11.5% year-to-date and 42.5% over the trailing 52 weeks.

A potential booster for the positive sentiment can be traced back to the Bloomberg report speculating China’s government preparing a stimulus package for the struggling stock market.

Significance of Purchases

Despite the purchases being relatively modest in light of Alibaba’s $171 billion market cap, the activities of these influential individuals indicate an important trend.

The unpredictable shifts in Alibaba’s shares and the governmental moves in China may have considerable effects on forex trading, particularly on assets linked to Chinese markets and tech industries.

PIP Penguin
Logo