Jack Ma and Joe Tsai, the chairman and vice chairman of Chinese e-commerce giant Alibaba Group Holding Ltd. , are planning to borrow more than $2 billion through a margin loan by using their own shares in the e-commerce company as collateral, according to media reports. Citing people familiar with the loan, Bloomberg said the money may be used to fund Blue Pool Capital Ltd., which is the family office of Alibaba set up by the vice chairman. In a statement sent to The Wall Street Journal, Alibaba said that “share financing is very common for founders and senior executives who hold such a strong belief in the future growth potential of their companies.” The move comes after Alibaba shares have taken a deep dive in recent months and are currently down 45% off their high of $120 in November.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News