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Alibaba’s Jack Ma and Joe Tsai have promised to share with banks around the world


Chinese billionaires Jack Ma and Joe Tsai have pledged between $ 35bn in Alibaba’s trading platform in exchange for large loans from financial banks, company documents show.

The pledges made to banks including UBS, Credit Suisse, Goldman Sachs and others, were made by maritime companies that control more than half of the two billionth in Alibaba, which achieved 5.8% since December. By sharing the shares, banks accept the shares as collateral but the lender maintains its shares.

Much of what he promised is not disclosed in the letters but the two have repeatedly changed their returns since Alibaba wrote to the US in 2014, documents shown by the Financial Times show.

Ma and Tsai, who own large shares in Alibaba, have used the loans to open up most of their assets distributed to the group.

International banks have provided various loans to Ma and Tsai. Tsai’s Gulfstream 650ER private jets are stored at Credit Suisse. The Swiss bank, which brought Alibaba to the market, also granted a loan during the IPO to another maritime company linked to the purchase of luxury homes in Peak district in Hong Kong and a new similar plane by Tsai.

The promise of sharing is risky and is undermined by many US companies. Compulsory sales of promising agencies can exacerbate the decline in the corporate sector. This can be continued with round-the-box billing, where lenders have to repay loans to creditors or lose property.

Credit Suisse, Nomura, Morgan Stanley, UBS, Mitsubishi UFJ Financial Group and Mizuho lost more than $ 10bn this year while being forced to relinquish positions in US-registered companies that house the Archegos family office after failing to meet a call.

Alibaba said Ma “and its owners” currently do not have any loans related to Alibaba’s shares while Tsai loans received by the shares are “easily managed” and “sound credit on loan to provide [a] a large shield against the invasion of borders ”.

The company promised that debt sharing is part of a “financial plan to generate revenue and diversify non-stock exchanges in Alibaba”.

Ma has been demoted to the top seat of Alibaba in 2019 with Tsai still second in command.

Website for maritime companies

The interest of Ma and Tsai in Alibaba occurs mainly through five trading companies: JC Properties, JSP Investment, Parufam, PMH Holding and APN Ltd.

APN has made one of Alibaba’s most popular stocks for 400m shares. But instead of exchanging loans, this was part of the payroll in Japan’s SoftBank and Yahoo Ma released the money Alibaba paid to Alipay – now part of Ant fintech – from the ecommerce company.

Ma’s wife, Cathy Ying Zhang, who has taken Singaporeans, has been a great help to her in her endeavors. Records show that the two foreign investment companies that Zhang and its director general, JSP Investment and JC Properties, own 60% of Alibaba’s family value.

Together, Zhang’s two companies with shares in Alibaba have made more than a dozen pledges to finance banks to repay loans to foreign companies.

Alibaba shares

In addition, Zhang is a shareholder of a Hong Kong Ma company that has purchased land and vineyards in France and has a stake in the Jack Ma Philanthropic Foundation. They also sign low-cost loans from Goldman Sachs to Enbao Asset Management, the family office of Ma.

In a joint venture, the 2015 Chinese real estate broker fund set up by Enbao, Ma used two foreign companies to donate $ 20m. One was a BVI from Rainbow Zone Enterprise, which offered $ 10m at the same time to borrow money from the Swiss bank UBS which was linked to an undisclosed amount promised to the bank by JSP Investment.

One day in 2019, the couple set up three state-owned companies, Miracle Orchid Investment, Rising Orchid Investment and Winning Orchid Investment. Three months later he received a loan from JSP Investment.

The record presented by FT made it clear that Alibaba’s American Depositary Shares had been promised loans from Morgan Stanley and Credit Suisse, while Goldman had promised American Depositary Shares, and UBS had promised “secrecy” and other items.

Diamond Key Worldwide from BVI, another company Zhang manages, has received four loans from UBS. Last year, a Chinese aid company bought a Rmb35m ($ 5.4m) site in Hangzhou, where Alibaba resides, for training.

The story of Jack Ma and the wife of Cathy Zhang and Joe Tsai sharing the role

Releasing fluids without risk markets

Banks say stock options are a common way for Chinese executives to raise money without losing control over their companies or sending in the wrong markets for the sale of their shares.

“It’s a great banking business, it feeds a lot of people,” said one former banker. “The founders are rich but have no money.”

American supervisors as a Tesla co-founder Elon Musk have also promised shares in their credit companies. But as a U.S. company, Tesla is required to explain the promises to its shareholders in accordance with the rules of the Securities and Exchange Commission.

But because of a strong desire to expel US from “foreign donors”, a group that includes almost every Chinese technical group present in the US including Alibaba, Ma and Tsai has no obligation to disclose their promises.

The documents show many shares and other promises of Tsai, Ma and his wife Zhang remained in place of Januaryware, even after they started selling their shares in Alibaba.

Ma and his wife have raised about $ 11.4bn since Alibaba floated in New York, and most have sold since 2017. Its charitable base has sold another $ 4.1bn. Tsai has sold about $ 5.4bn.

Alibaba said Ma and Tsai had “owned the company for 22 years and continue to have assets in Alibaba, which are the majority of their assets”.

Former English coach Jack Ma is one of China’s leading businessmen, who founded Alibaba and Tsai in 1999 before building a fortune with Bloomberg for $ 49.9bn.

Late last year, however it disappeared in public Beijing started a fighting the Ants Group, fintech Ma photographed in Alibaba in 2011.

Credit Suisse, Morgan Stanley, Goldman Sachs and UBS declined to comment.

Additional reports of Joe Leahy in Hong Kong


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