Jack Ma, co-founder of Alibaba Group Holding Ltd., has reduced its stake in Alibaba Group Holding Ltd. from 6.4% to 4.8% in the past year, according to an annual document released on Friday by Jack Ma, co-founder of Alibaba Group Holding Ltd., which has cashed about $9.6 billion at its current share price, according to Reuters.
The divestment comes as Mr. Ma retired in September as the executive chairman of the Chinese e-commerce company and retired from his formal business role to focus on philanthropy.
Alibaba did not disclose the average selling price of its divestment. Since Mr. Ma announced his 6.4% stake a year ago, its share price has risen about 40%.
Despite a sharp slowdown in China's economy, more and more people are buying necessities online due to the COVID-19 flu pandemic, which also helped the stock's excellent performance growth.
Cai Daba, executive vice chairman of Alibaba, also reduced his shareholding in the company from 2.3% to 1.6% during the same period. As of Friday, the shares sold were worth $4.1 billion.
Since Zhang Chaoyang was announced to succeed Ma Yun as chairman of Alibaba, Ma Yun and Cai Yingwen have been steadily reducing their participation in Alibaba's regular business. He took office in September 2019.
Since this year, the two have donated millions of personal protective equipment (PPE) to hospitals around the world through their respective charities to help curb the spread of COVID-19.
Mr. Ma plans to sell up to 21 million shares in a year to support his charity, according to a document submitted to the Securities and Exchange Commission in April 2019.