Alibaba co-founder Jack Ma has announced his confidence in the company and reiterated his plans to maintain his ownership of its shares, following reports of a planned sale by his family trust. The regulatory filing revealed that Ma’s family trust intends to sell 10 million American Depository Shares of Alibaba Group Holdings, valued at approximately $871 million.

It’s important to note that this sale is part of a pre-determined “preset conditional plan” that Ma’s office established earlier this year. The plan allows for a partial sell-down of shares in the future, but no shares have been sold as of now. Ma’s office stressed that the decision to sell shares does not indicate a lack of confidence in Alibaba and stated that they believe the current stock price is undervalued.

Alibaba has chosen to remain silent on the matter when approached for comment by Reuters.

The share sale is scheduled to take place on November 21 and will be facilitated by JSP Investment and JC Properties, funds associated with Ma’s family trust. It is worth noting that the announcement of the share sale, coupled with Alibaba’s decision to abandon its plans for a listing of its cloud unit due to import restrictions on U.S. chips, led to a significant drop of nearly 10% in the company’s Hong Kong shares.

Although Ma stepped down as chairman of Alibaba in 2019, he continues to hold a substantial stake in the company through his family trust. Additionally, the fact that the South China Morning Post, the source of the report, is owned by Alibaba further adds to the significance of these developments.

These recent events have generated speculation and raised interest in the future of Alibaba and its leadership. As one of the world’s most successful e-commerce giants, the decisions and actions of Jack Ma and the company are closely monitored by investors and industry experts. As the share sale approaches, it will be intriguing to observe the impact of these developments on Alibaba’s stock price and long-term prospects.

Useful links:
1. Reuters – Alibaba Group Holdings Stock Performance
2. Alibaba Group Holdings Investor Relations