In a wipe-off and meltdown of epic proportions, one Jack Ma speech wiped off $344 billion in Alibaba shareholder’s worth. According to Bloomberg, the hundreds of billions dollar’s worth of wipe-off is the biggest shareholder wipe off in the world’s history. One should note that the speech mentioned isn’t a recent one but was given almost a year ago. The repercussions of Jack Ma’s speech were such that the Beijing authorities suspended Ant Group’s listing on the share market. This led to a butterfly effect of sorts and soon Chinese stocks tanked as various sectors crumbled underneath the magnitude of Jack Ma’s words.
Billionaires are known for several things – their vision, their ability to handle businesses spread across multiple sectors, and their powerful words that has a significant impact on the market sentiment. However, at times their words lead to their downfall.
Earlier last year, Elon Musk slipped to the third position in world’s richest person’s list. This happened after some of his tweets on Twitter led to sharp plummeting of cryptocurrencies such as Bitcoin and Dogecoin. He had also publicly called out his electrical vehicle company Tesla in one of his tweets, leading to downfall of Tesla’s share prices.
Recently, a Bloomberg report states that speech of outspoken billionaire Jack Ma led to $344 billion in Alibaba’s shareholder’s worth.
The Facts of the Matter
What happens when a billionaire calls out the financial system of the country where his businesses are listed? And what happens when the same person calls the financial system of a country infamous for their free speech issues.
Loss Equates to Bangladesh’s GDP, and 1/10th of India’s Market Cap
In October 2020, outspoken billionaire and Alibaba founder Jack Ma publicly criticized China and its financial system. This has led to about $344 billion being wiped off from Alibaba’s shareholder’s worth. To give our reader’s perspective, the amount is just short of the entire GDP of Bangladesh. Further, the Jack Ma’s speech led to Alibaba lose amounts that is one-tenth of the entire Indian market capital.
According to a Bloomberg report, this is the biggest share-holder wipeout in the history. Other companies that lost significant share market worth included Khaishou Technology that lost $104 billion and Ping An Insurance Group which lost $66.1 billion, etc.
What Did Jack Ma Say in his Speech?
In his speech, Jack Ma claimed that he was torn to say what he was feeling, but added that for the financial development China, it was of pertinent important that he spoke. Ma went on to launch a not-so-subtle attack on the way Chinese financial system operates.
Ma in his speech slammed China’s financial regulation which stifled innovation and further claimed that banking rules were that of “old people’s club”. He also urged for immediate changes in the system and further labelled the mentality of Chinese banks as “pawnshop mentality”.
Continued his attack, Ma claimed that people who were on the higher rungs of the banking system were out of touch “old men”. Ma claimed that government’s interference in businesses was stifling innovation and added that future was all about innovation and not regulatory skills.
The Eventual Disappearance
A week after the fiery speech, the Shanghai Stock Exchange the Ant Groups listing from the exchange citing “regulatory change”.
Further, Jack, who was known for his Twitter game, disappeared from the microblogging platform. Since October 12, 2020, he hasn’t posted a tweet. Since then, the most outspoken billionaire in the world, is still missing.