The market capitalization of the Chinese tech giant Alibaba has nosedived under pressure of government regulators, following the controversial speech by its founder, Jack Ma.
According to preliminary reports, during the year Alibaba’s market cap collapsed by $344.4 billion - more than any other company in the world. Among the top 10 companies ranked by market cap loss, 8 are situated in China - the result of the Chinese government’s crackdown on big business.
Kuaishou Technology, the developers of the eponymous video sharing app, has lost $104 billion of its market cap due to regulator pressure. Other Chinese companies with severe losses are Ping An Insurance (-$66.1 billion), China Life Insurance (-$50.8 billion), Tencent (-$65.4 billion), property broker KE Holdings (-$50.3 billion), after-school tutoring company TAL Education (-$39.1 billion), and e-cigarette maker RLX (-$36.7 billion). The remaining non-Chinese companies in the list are Zoom Video Communications (NASDAQ:ZM) and the Japanese conglomerate Softbank (T:9984) that has lost $63 billion and $40.9 billion of their market cap respectively due to poor performance.
In 2020, founder of Alibaba Jack Ma made a speech criticizing the Chinese financial system. Afterwards, Chinese regulators halted the IPO of Ant Group, Alibaba’s subsidiary specializing in financial services.
