Alibaba Group
In a pandemic year that saw businesses across the world take a big hit, Alibaba wasn’t immune to the impact of COVID-19, especially given the fact that the coronavirus pandemic began in China.
Alibaba’s market value is a whopping $600 billion, and hopes are pinned on the dual IPO in Shanghai and Hong Kong bourses. But a massive blow comes for the e-commerce giant as Alibaba and Ant Group's $34 billion initial public offering (IPO) was suspended by the Shanghai Stock Exchange. The Shanghai Stock Exchange had cited changes in the regulatory environment as the reason behind this suspension. China’s regulators had earlier warned Ma and his company that the listing would mean the group would be subject to scrutiny and could face new curbs to its expansion.
And on December 24, another hit came in for the Chinese giant, as it now faces an antitrust probe by its own country. According to reports, Alibaba had earlier been warned by the regulators for its “choosing one from two practice under which merchants are required to sign exclusive cooperation pacts preventing them from offering products on rival platforms.”
The statement was issued by China’s State Administration for Market Regulation, which is responsible for keeping a check on market competition, monopolies and more.
Representatives from Ant Group are set to meet the regulatory authorities soon, as the regulators will “guide Ant Group to implement financial supervision, fair competition and protect the legitimate rights and interests of consumers.”
As the decade comes to a close, Ma has not only lost his Asia’s richest man tag to India’s Mukesh Ambani, but has now also lost the tag of being China’s richest man to Ma Huateng, founder and CEO of Chinese Internet giant Tencent Holding. In 2020, Ma and his longtime friend Masayoshi Son, the Chairman of SoftBank, both resigned from each other’s company’s boards.
As of December 23, 2020, Alibaba has lost over $165 billion in market value, from its 2020 high of $858 billion in October.