Chinese business magnate Jack Ma has reduced his stake in Alibaba Holdings Ltd in the span of one year by selling 1.6 % of his personal stake in the company. This leaves him with 4.8% stake in the company. Jack Ma is believed to have made an estimated US$9.6 billion using the company’s current share price.
The divestment comes as Jack Ma who had been the company’s CEO from inception decided to retire and pull back from leading the formal business of the e-commerce giant and focus on philanthropy in the latter part of 2019.
The Chinese e-commence platform’s share has risen about 40% since Ma reported his 6.4 % holding in the company last year.
The stock’s astronomical performance has partly been attributed to the coronavirus pandemic as more people stay home and shop online.
Joseph Tsai, Alibaba Executive Vice Chairman also reduced his stake in the company by 0.7% around the same time as Ma.
Jack Ma and Joseph Tsai have both gradually reduced their involvement in the activities of the firm since a new CEO in the person of Daniel Zhang was announced September 2019.