Jack Ma’s Clash With Beijing Costs Ant, Alibaba $850 Billion

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Jack Ma’s Criticism Of Beijing Has Now Cost His Companies Over $850bn

Media 2 Mins Read July 10, 2023 Posted by Soumava Goswami

Jack Ma’s Alibaba and Ant Group peaked in 2020. However, the companies came under pressure after Jack Ma criticized Beijing. The companies have been affected a lot since then due to various regulatory crackdowns from the Chinese State.

After Beijing?s pressure, Jack Ma disappeared for more than two years, and the companies have lost more than $850 billion collectively since then. On Friday, the Central Bank of China announced a fine close to $985 million for Ant Group. Ant Group is a fintech company that was founded by Jack Ma and works through the Alipay Payments app.

According to Business Insider,

?Ma angered Chinese authorities after giving a speech in October 2020 in which he criticized China’s financial regulatory system and claimed Chinese banks were operating with a “pawnshop” mentality.?

Jack Ma faced a big backlash from the Chinese State after it criticized Beijing, and this resulted in several negative effects on his wealth as well as his companies. However, the fine might be a signal of the end of the regulatory crackdown.

In addition to that, Alibaba, which was co-founded by Jack Ma, saw a drop in 45% of its market value of about $620 billion after it reached its peak in 2020. Currently, the value of Ant Group is around $78.5 billion, and its valuation in 2020 was $315 billion. Hence, it is fully visible that Beijing?s crackdown fully weakened the company.

The drop in the valuation of both Alibaba and Ant Group saw a drop in the net worth of Jack Ma to $34.1 billion, which was $61 billion in October 2020.

In recent times, Ma has been spotted in various places, including Bangkok, Hong Kong, Hangzhou, and various other places.

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A passionate writer and an avid reader, Soumava is academically inclined and loves writing on topics requiring deep research. Having 3+ years of experience, Soumava also loves writing blogs in other domains, including digital marketing, business, technology, travel, and sports.

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