Alibaba Group Holding Ltd (NYSE: BABY), co-founder Jack Ma, appears in public again on Wednesday, while the company’s shares rise 5.5% in New York, but concerns remain about the weakened relationship with the Chinese company’s government .
Investors are seeking more reassurance about the regulatory environment surrounding the e-commerce giant. Here’s what they say:
Just appearing is not enoughWilliam Huston, founder of Bay Street Capital Holdings, an investment advisory firm in California, said: “We all know just because he shows up … it does not necessarily explain what’s going on.” Huston’s business has reduced its position in Alibaba from 8% of the portfolio to less than 1%, reports Reuters.
See also: Alibaba raises 8.5% when Jack Ma appears for the first time in months
‘If you do not know what to do in such a developing situation, you can not use traditional security analysis to make decisions. We stand aside and watch, ”said David Kotok, chief investment officer at Cumberland Advisors in Florida.
Jack Mom’s Value: Investors also value the leadership Ma provided to the Chinese conglomerate. Houston said: “One of our most important criteria is leadership and we have invested in Alibaba because I respect Jack Ma as a leader.”
Alibaba Still In Hot Water: The reappearance of the founder of the company does not mean that Alibaba is clear.
“Alibaba is not outside the doghouse, but it is at least clear that the current anti-monopolistic action is not about punishing Jack Ma,” Zhang Fushen, senior analyst at Shanghai PD Fortune Asset Management, told Al Jazeera.
See also: The ant financial exchange is Xi Jinping’s latest battle with big business
Brock Silver, managing director of Kaiyuan Capital, a private equity fund in Hong Kong, noted that while Ma’s appearance is again a sign that its relationship with China’s regulators has stabilized, it does not mean that Ma’s corporate empire is free is not concerned. , ”Reports the Straits Times newspaper in Singapore.
‘[Ma’s] reappearance can only be a good thing. But it is useless to speculate at this stage about the viability of an Ant Group listing, ”said Wei Wei Chua, portfolio manager of Mirae Asset Global Investments Hong Kong, according to Straits Times. The investor referred to the suspended mega-stock market of Alibaba’s fintech arm that fell through in November.
Price action: Alibaba shares closed 5.5% higher at $ 265.49 on Wednesday and rose 0.1% in the after-hours session in New York.
Photo courtesy: World Economic Forum via Wikimedia
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