China’s rich tech billionaires appear to be taking advantage of the overheating markets in Hong Kong and the United States as they announce they are selling their shares on Tuesday.
Colin Huang (Pinduoduo), Jack Ma (Alibaba), and Ma Huateng’s (Tencent) billions of dollars of shares are being sold or transferred and so far, Jack Ma is taking the biggest sale and his net worth currently stands at $48.8 billion.
Even though Alibaba’s profits remain decent, China’s leading online retailer is facing its slowest growth ever. And with Alibaba’s bullish status, it will likely depend on Ant’s Group’s bottom line, according to Bloomberg. After all, Ant is growing as insurance premiums have doubled and the company manages 1.3 billion active users for its payment platforms.
As of now, Alibaba declines to comment on the actual amount of the stake as they have partial exemption, given by Hong Kong’s regulator, from following its disclosure requirement.
With a promising possibility of making many people rich, it looks like the true benefit to the Chinese multinational tech company is in the ongoing profits the financial services company will keep on providing Alibaba, not entirely on the value of its affiliate’s stock.
US investors are also taking their chance on the company founded by Ma himself, believing the Chinese economy is coming back and regardless of what Trump plans to continue on banning under his administration, people can “stay home and spend money” using Alibaba.