BEIJING (Reuters) – Once seemingly untouchable, Alibaba founder Jack Ma has endured a tumultuous race that saw his Chinese e-commerce giant with a record antitrust fine of 18 billion yuan ($ 2.752 billion) Saturday, resolving a key uncertainty, even while others persist for him and his business empire.
The investment of fortune for 56-year-old Ma, who has disappeared from public view since an October speech that exploded China’s regulatory system, has been surprising to an entrepreneur the transformation of trade into China – and its relentless optimism. cult-like reverence.
Ma, who left Alibaba in 2019 but appears in the corporate psyche and in the eyes of investors, had delighted with the rise of borders with bold statements, having a high profile even while most Chinese counterparts they kept their heads down.
Friends of the high places, as well as pride in Alibaba’s success, had protected Ma, sources said.
That was until his Shanghai speech sparked a backlash that led to the overcoming of a $ 37 billion IPO for Ant Group, a subsidiary of Alibaba’s financial technology, as well as a reduction for part of the authorities of the e-commerce giant itself and the wider “platform economy”, which continues to reverberate.
Ant, which has rapid growth and wheel-free lending practices, has raised regulatory concerns about financial risk, and continues to be the subject of a forced restructuring that is expected to slow down some of its most profitable businesses and reduce its valuation. .
“Entrepreneurship must be disruptive. But being provocative in government has its limits, ”said Duncan Clark, chairman of Beijing-based technology consultancy BDA China and author of a book on Alibaba and Ma.
Saturday’s deal, he said, “should draw a line” in relation to the Alibaba issue.]
“But for Ant and Jack, there is still no line drawn,” he said.
Alibaba declined to comment on Ma and its foundation did not immediately respond to a request for comment on Sunday.
CONSPICIOUS ABSENCE
Ma’s absence from public view became visible until she first appeared in three months in late January, speaking to a group of video teachers, who grew Alibaba’s shares. It has continued to maintain an extremely low profile.
“He’s playing a lot of golf and improving his handicap,” said one person who knows him.
A former English teacher, Ma co-founded Alibaba in 1999 from a shared apartment in the eastern city of Hangzhou, eventually building a colossus that spans e-commerce, financial services, cloud computing and even supermarkets. which makes him the most famous businessman in China.
It was also the richest in China, until the reduction returned it to fourth place on Hurun’s Global Wealthy List published in March, although the wealth of Ma and her family still grew 22% until to 360 billion yuan, according to the list.
Last July, it had 4.8% of Alibaba.
In 2018, Ma was revealed to be a member of the Communist Party by his official newspaper, discrediting the public assumption that he was politically detached.
“ARROGANCE DISCOUNT”
Ma has often been described in the Chinese media as a source of national pride and even legend. His global prominence made him an almost diplomatic figure. Countless books have been published on Alibaba’s business and founding tactics.
Shades like “Today is difficult, tomorrow will be worse, but tomorrow the sun will pass”, are common in Chinese business circles. In Hangzhou, small businesses are known to have created altars adorned with images of Ma to bring fortune.
But in a February rejection, Ma was left out of a list of Chinese business leaders published by state media.
Franklin Chu, president of Sage Capital in Rye, New York, noted that Alibaba’s shares are trading at a 30% discount from the 52-week high.
“I call this the‘ Jack Ma arrogance discount, ’combined with the recent round of Chinese coming out of Washington,” he said.
Alibaba, he said, “has to work hard to re-establish an accommodating relationship with its regulatory managers.”
Since retiring from the company, Ma has tried to focus her time on philanthropy and education, including her charitable trust, the Jack Ma Foundation and two schools in Hangzhou.
Ma actively participated in a conference and made at least 12 appearances in 2019 before the COVID-19 pandemic began. In March 2020, he opened a Twitter account (the platform is blocked in China), which mainly tweeted about his foundation’s COVID-19 prevention efforts. His last tweet was on October 10th.
“It is crucial that Chinese entrepreneurs are discreet. Don’t talk by chance. And don’t say anything bad, ”said Edward Chen, chairman of Shanghai-based fintech consulting firm China Rising Group, in a video post on social media.
“Prudence with words and action is the number one priority for Chinese entrepreneurs to live longer.”
(1 $ = 6.5522 Chinese yuan renminbi)
Reports from Tony Munroe in Beijing, Brenda Goh, Samuel Shen and Josh Horwitz in Shanghai, Kane Wu in Hong Kong and Ross Kerber in Boston; Edited by Kim Coghill