Why is Jack Ma, Alibaba figurehead and the richest man in China missing?

If Elon Musk disappeared from view for more than two months – in his most insufferable way, I’m sure we all wanted that to happen – investors would send a search. Where is the figurehead that has taken their company and its stock to unprecedented heights?

His Chinese counterpart, Jack Ma, has now disappeared from view for more than two months as his company is under investigation by Chinese authorities. There is no word on his whereabouts. Here in Asia, we wonder where the Chinese poster boy entrepreneur has gone.

Rumor has it, and most likely, that Ma has been told she cannot leave China. Maybe he keeps his head under the parapets of his own accord. Be that as it may, the situation is so dire and politically charged that the Beijing government is now reportedly censoring news in the Chinese media about the antitrust investigation into Ma’s baby.

Ma, the co-founder and figurehead of e-commerce giant Alibaba Group Holding (BABA), was last seen on October 31, when he took part in the livestream gala extravaganza at the Chinese publishing festival “Double 11.” That was just a week after he delivered a speech at a financial conference in Shanghai criticizing Chinese bank regulators and calling on industry and state banks for having a “pawn shop” mindset.

Bad move. Several highly influential bankers and regulators were in attendance, sputtering in their Nongfu Spring bottled water. We hear behind the scenes that Chinese President Xi Jinping was furious.

Xi had already met privately with Ma and the founder of video game maker and WeChat app operator Tencent Holdings (TCEHY), Pony Ma (who is unrelated) a few years ago, to remind China’s two richest people and most famous executives that their companies operate only on behalf of the Communist Party. Xi, he didn’t have to remind them, is the only sheriff in town.

Days after that speech in Shanghai, Ma and the two top executives of Ant Group, the company that Ma founded to process payments for Alibaba’s websites, were brought in for questions about their free-wheeling financial model, which provides consumer loans to customers and offers a range of financial services. of third parties. On November 3, Ant was blocked from listing his shares for the first time, just two days before what was planned to be the largest IPO in world history at $ 37 billion.

According to President Xi, the IPO personally destroyed The Wall Street Journal. That’s right, given that the Shanghai Stock Exchange had already approved the offer before issuing the order to withdraw it at the last minute. Xi has “shown a diminishing tolerance” for large private companies wielding capital and influence – and hunted executives who challenge the iron rule of the man called China’s “Emperor for Life.”

Chinese regulators are now trying to restructure and possibly split Ant Group, which operates the ubiquitous Alipay digital wallet app. They are also concerned about business practices not only with Alibaba but its rivals such as JD.com (JD) and Pinduoduo (PDD). Chinese e-commerce sites have a notorious “1 of 2” policy for many merchants that forces them to agree to sell their goods only through a single platform’s website.

The ant is also kicked in the other shin. US President Donald Trump on Tuesday issued one of his last actions in office to ban US individuals and companies from transacting with Alipay and seven other Chinese apps, including Tencent’s WeChat Pay and QQ Wallet. Trump said the apps could capture “massive amounts” of users’ personal and sensitive information, posing a threat to national security.

Ma suddenly finds herself political persona non grata. The propaganda arm of the Chinese government has issued a directive to news outlets to follow the official line of the investigation into Alibaba, and not to engage in any unauthorized analysis of the events, the Financial times reports today, citing two people who have read the warrant.

Several online blog posts discussing Ma’s whereabouts have been censored and removed, according to the FT. In addition, an online publication backed by Alibaba that issued an editorial warning about excessive punishment against Chinese technology companies was forced to cease operations for a month.

Ma didn’t show up for his own TV show in November. He personally heard the pitches from entrepreneurs who wanted to become Africa’s business heroes, in the show of that name. But when the last episode aired, he was nowhere to be seen, his place was taken by an Alibaba manager. An Alibaba spokesperson said: “Jack Ma had to miss the final due to a scheduling conflict.”

Ma is not on the official list of people who cannot leave China. But Bloomberg reports he was told not to leave the country in December. A hashtag about not being allowed to leave was washed away by censorship from the Twitter-like Weibo (WB) app in China.

Musk may be the richest man in America, and indeed the world now. But Ma, who likes the spotlight, is his direct equivalent in China, with his $ 65.6 billion fortune making him the richest man there. Ma stepped down as Executive Chairman of Alibaba in September 2019, but his shadow looms over the company as he is a mythical figure among Chinese investors on the hunt for the next “unicorn” launch that will become a multi-billion dollar company.

There is a danger to the Communist Party if they take on Ma. While political rights do not exist in China, personal property and commercial rights are well protected. By putting Alibaba in the party’s sights, other successful entrepreneurs, most of whom are already trying to keep large chunks of their wealth overseas, out of the hands of the Communist Party.

Still, the Communist Party will usually find a way to bring you down if they want you to fall. Allegations of bribery and corruption are the normal charges.

Temporarily, it seems, they already have their wish with Mr. Ma. I bet he remains silent after opening his mouth in Shanghai, which got him into trouble in Shanghai. But when and where does it resurface ?!