Alibaba is one of China’s most successful tech companies, revolutionizing the way businesses are run in the country. Founded in 1999 by Jack Ma and his team, the business has become the world’s largest retailer and one of China’s most valuable companies. Recently, Alibaba has announced restructuring plans to split up the business and float its units and the news has stirred up the markets. Exchange data has since indicated a record high in net foreign buying of mainland-listed stocks, highlighting the momentum of China’s foreign funding inflows.
The surge in foreign funding is being attributed to the leadership’s turnaround to become more business friendly as economic growth speeds up, as well as Alibaba’s plans to restructure. The company’s stocks have notably risen this year after successive dips in 2021 and 2022 – a sign of investors turning positive on the company.
The MSCI China index has risen 4.5% in March and the Shanghai Composite has closed out its best quarter in more than two years, with a 5.9% gain. For the quarter, foreign cash flowed into China’s markets to the tune of 186 billion yuan. Investors now view MA’s return to China and Alibaba’s breakup as signs of an effort towards cooperation between the government and entrepreneurs.
Jack Ma is a Chinese businessman, philanthropist and one of the most recognizable entrepreneurs in the world.He is the co-founder of the multinational technology conglomerate, Alibaba, and created the company with a team of 18 co-founders in 1999.Ma is referred to as one of the “Four Heavenly Kings” in China for rediscovering and popularizing modern business concepts such as online shopping and online payments.According to Forbes, Ma was recognised as the richest man in China in 2018, with a net worth of US$30 billion.He is also the founder and chairman of the Board of Directors of the Jack Ma Foundation, which seeks to alleviate poverty through education.