After China imposed a $2.8 billion fine on Alibaba Group for violating anti-monopoly rules, founder Jack Ma’s wealth increased by over $2 billion.
Alibaba’s American depositary receipts jumped 9.3 percent on April 12 in New York, the biggest rise in nearly four years, Bloomberg reported. Investors were relieved since the fine is less severe than what many feared.
Ma’s net worth rose by $2.3 billion to $52.1 billion, according to the Bloomberg Billionaires Index.
Also read: China regulators fine Alibaba $2.75 billion for anti-monopoly violations
The penalty is equivalent to around 4 percent of the e-commerce giant’s revenues in 2019. This is far less than the maximum 10 percent allowed under Chinese law, the report said.
“Alibaba would not have achieved our growth without sound government regulation and service, and the critical oversight, tolerance and support from all of our constituencies have been crucial to our development,” the company said in an open letter.
“For this, we are full of gratitude and respect,” Alibaba said as quoted by the business news website.
Also read: China extends crackdown on Jack Ma’s empire with enforced revamp of Ant Group
Ma, who was the richest person in China, is currently the third-richest, after Nongfu Spring founder Zhong Shanshan and Tencent Holdings’ Pony Ma.
Reuters separately reported that China had also extended its crackdown on Alibaba-affiliate Ant Group, imposing a restructuring on the fintech company,