Alibaba co-founder Jack Ma has returned to China. It could be a sign that the Chinese government's crackdown on technology companies -- and their powerful executives -- might be easing.
Ma has returned to China after spending roughly a year overseas, chiefly in Japan, The Wall Street Journal reported, citing people familiar with the matter. Ma has barely been seen in China since he criticized Chinese regulators in a speech in 2020.
Shares in Alibaba (ticker: BABA) initially climbed more than 3% in Hong Kong on the news of Ma's return but closed down 0.1%. American depositary receipts of Alibaba were up 0.3% in premarket trading.
Ma's return to China could be a sign that Beijing's government is recognizing the need to show a friendlier face toward domestic entrepreneurs, amid concerns about the wider economy. That would offer a lift to Alibaba stock, which should be set to benefit from a relaxation of Covid-19 controls in China.
Investors likely will remain wary, however. Alibaba shares initially surged in January this year when Ma ceded control of Chinese financial-technology company Ant Group, on hopes that would clear the way for Ant's long-awaited initial public offering. Those hopes have since faded, with Bloomberg reporting an Ant IPO is unlikely to happen this year. Alibaba's ADRs have declined 1.4% this year so far.