Alibaba lost $26 billion of its market value on Tuesday, due to name confusion, but recouped a part of its losses later.
Alibaba’s shareholders were surprised after state broadcaster CCTV reported that authorities in the company’s home base of Hangzhou had imposed curbs on an individual surnamed Ma, the same name of the company’s owner. The confusion caused Alibaba’s share to plunge as much as 9.4% in Hong Kong.
The stock rebounded after a statement from Hangzhou police indicated the accused person’s name covered three characters, while Jack Ma’s name is composed of two characters.
“Investors’ reaction shows the relatively weak sentiment in the tech space in light of the strict regulations the Chinese authorities have imposed on tech giants last year,” Willer Chen, analyst at Forsyth Barr Asia Ltd, told Bloomberg.
