Alibaba shares dropped more than 9% in Hong Kong on Tuesday after an unconfirmed Chinese state media report said that an individual surnamed ‘Ma’ had been detained by police.
The stock later recouped its losses to trade 1% lower after China’s state broadcaster CCTV revised its initial report to clarify that the individual was not Alibaba‘s
Billionaire founder Jack Ma.
A spokesperson for Alibaba (ticker: BABA) did not immediately respond to a Barron’s request for comment.
CCTV’s initial reported said that authorities in the city of Hangzhou, where Alibaba is based, had taken action against an individual surnamed Ma, over suspicion of using the internet to engage in activities endangering national security, Reuters reported.
The CCTV report had said that the suspect’s full name was spelled with two characters, triggering a 9.4% fall in Alibaba’s stock price.
The shares recovered the majority of those losses after CCTV clarified its report to reflect a statement from Hangzhou police indicating that the individual in question had a three-character name, suggesting that it was not Jack Ma, the Reuters report said.
The Chinese state-backed tabloid Global Times later reported that the individual in question was a hardware research director at a Chinese tech company, citing sources.
Write to Lina Saigol at [email protected]
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