(Yicai) Nov. 17 -- The family trust of Jack Ma, who founded Chinese e-commerce and fintech giants Alibaba Group Holding and Ant Group, plan to cut their holdings of Alibaba’s US-listed shares by about 5 percent.
JC Properties and JSP Investment intend to sell 10 million of Alibaba’s American depository shares with a value of about USD800 million on Nov. 21, according to documents disclosed on the US Securities and Exchange Commission’s website yesterday.
Alibaba’s New York-listed shares [NYSE: BABA] closed 9.4 percent down at USD79.11 yesterday. Its stock in Hong Kong [HKG: 9988] plunged 10.1 percent to HKD73.10 (USD9.38) as of 11.45 a.m. today.
Ma first announced he would cut its holdings in Alibaba in August 2016, less than two years after the company’s listing in the US. On that occasion, he said he would sell his 5% holdings of Alibaba‘s shares in the following 12 months to fulfill his commitment to public welfare donations and better manage his wealth. In the following years, Ma reduced his stake in Alibaba several times.
The last time Alibaba unveiled Ma’s shareholding ratio was over three years ago. As of July 2, 2020, Ma had sold about 234 million Alibaba shares, cutting his direct and indirect shareholding ratio to 4.8 percent.
According to relevant regulations of the Hong Kong and New York stock exchanges, non-major shareholders holding less than 5 percent are not required to disclose their stake sales.
As of March 2020, Ma directly held only 0.02 percent of Alibaba’s shares, as his holdings in the company were mainly through several entities, which are Yun Capital, Ying Capital, JC Properties, and JSP Investment, which are owned by Ma’s family trust, and APN, in which Ma holds a 70 percent stake.
Editor: Futura Costaglione