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Alibaba Bounces Back After A $26 Billion Loss Due To A ‘Ma’ Report

Alibaba shares saw a dip of 9.4%, which erased $26 billion of its market value as a result of the incorrect news reported by the state-owned broadcaster CCTV.

Alibaba Bounces Back After A $26 Billion Loss Due To A 'Ma' Report

False news concerning the co-founder of Alibaba Group Holding Ltd., Jack Ma, created ripples in the prices of its shares on Tuesday, further emphasizing the existing investor worry in Chinese tech stock as a result of the Government repression.  

The shares saw a dip of 9.4%, which erased $26 billion of its market value as a result of the incorrect news reported by the state-owned broadcaster CCTV (China Central Television). The report stated that Hangzhou, Alibaba’s home state, had foisted curbs on a person named Ma. 

Stocks witnessed a rebound after the Hangzhou police clarified that the actual person’s name had 3 separate characters. Subsequently, CCTV updated the news with the correct name. The Chinese name of Jack Ma consists of the 2 characters Ma Yun. 

According to Global Times, the person in the news is the director of an IT company focusing on hardware R&D. Compulsory measures were imposed on him due to rebellion against State and other actions threatening state security. 

Given the existing scenario, the incomplete information rattled the already anxious investors. Beijing’s breakdown of the Internet sector was flagged off by halting the Ma-owned Ant Group’s IPO. This is seen as a move to control the excesses of the rapidly growing Internet firms. 

Authorities in the city of Hangzhou maintained silence and were conveniently unable to answer during the Golden Week Holiday. Spokesmen for Ant and Alibaba reserved their response on this matter.

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