Jack Ma Loses More Than Half of His Wealth After Criticizing Chinese Regulators
Jack Ma, once Asia’s richest person, has seen his fortune decrease significantly over the past three years, with his net worth estimated to be less than half of its peak value in 2020.
The decline in Ma’s wealth is attributed to the falling valuation of Ant Group, the fintech giant he co-founded but no longer controls, resulting in a $4.1 billion reduction in his wealth over the past year.
Ma’s net worth now stands at around $30 billion, a significant drop from its peak of $61.2 billion in 2020, as reported by the Bloomberg Billionaires Index.
Ant Group, known for its Alipay digital payments system, has experienced a massive decline in valuation, with a share buyback currently valuing the company at $78.5 billion, down 75% from its 2020 valuation.
When Ma criticized Chinese financial regulators and banks in a speech just before Ant’s planned IPO in 2020, it triggered a crackdown on private enterprises in China, leading to increased regulatory scrutiny for tech companies across the country.
Chinese regulators halted Ant’s IPO and ordered the company to restructure, causing a combined loss of market capitalization for Ant and Alibaba totalling $877 billion based on peak share prices in late October 2020.
Since then, Ma has maintained a low profile, spending time in Japan, Hong Kong, and engaging in philanthropy, stepping back from the companies he founded.
Ma relinquished control of Ant in January 2021, following regulatory demands for business restructuring, and had stepped down as chairman of Alibaba in 2019.
Ant and its subsidiaries were fined $984 million by Chinese financial regulators recently, indicating the end of the regulatory crackdown, while Alibaba announced plans to split into six separate units to enhance agility and value for investors.
