Arrest the man named 'Ma' causes Alibaba stocks to crash, abolish $26 billion from share value

Alibaba Group shares crashed on Tuesday after China’s state broadcaster announced the arrest of someone with the same surname.

Ma had been apprehended on charges of using the internet to engage in activities endangering national security.

Investors panic and quickly dumped their shares, causing the stock to crash by as much as 9.4%, erasing about $26 billion in value.

Shares in Alibaba are down 66% from their peak in October 2020. Investors started selling shares after Ma, addressing a high-profile conference.

Regulators launched antitrust investigation into the e-commerce group causing in record $2.8 billion fine for anticompetitive behavior in 2021.

Longtime Alibaba investors, like Charlie Munger’s Daily Journal Corp., are ending their holdings of Alibaba shares.

Investors worry that China may revive the crackdown on its tech sector. Beijing imposed fines on some of the country largest tech companies in 2021.

China leaders may be considering scaling back the crackdown as the country’s economy struggles with COVID outbreaks.

Ma stepped down as executive chairman of Alibaba in 2019 and has not been seen in public since January.