Jack Ma back in charge of Alibaba?

A Jack Ma at the helm in Hangzhou could help revive both Ali’s stock and consumer confidence

View from China with an Austrian School of Economics Perspective

Just a few days ago the Western press was flooded with stories about Jack Ma’s allegedly shrinking fortune. This article by Fortune is an example of one of those. It mentions that he is now teaching in Japan.

But is that true?

What we do know for sure is that in the spring he returned to Hangzhou, where Alibaba’s headquarters are located, for a short visit. Given the previous acrimony between him and the Chinese government, it’s a fair guess that the current premier Li Qiang was personally involved in arranging this. We can also guess that there was more to that visit than just tourism for old times’ sake.

We also know that Alibaba’s stock has risen significantly over the past few weeks, with the latest rise being ironically triggered by the announcement of yet another massive fine – this time for a bit over 7 billion yuan or around $1 billion US dollars. Apparently the understanding is that the witch hunt is now officially over, meaning that the long delaying listing of Ali Financial can finally go ahead. Since Alibaba will presumably be a major beneficiary of the listing, if/when it is actually approved, this is expected to further push up Ali’s stock.

Since the announcement of the latest fine, the stock has however continued to climb.

Could this be because Jack Ma is back in charge in Hangzhou? If that were true, it would not only be hugely motivating to Ali’s rather unmotivated work force, but could potentially also be seen as a positive signal for China’s broader economy. Given the current rock bottom business confidence, it could not come at a better time, and would be seen as a coup for China’s new premier Li Qiang, who was previously the party secretary for business-friendly Shanghai.

This is in fact what our sources in Hangzhou are claiming. If it proves to be true, further gains could be ahead.

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