Alibaba Is Not Alone, But Stocks Are Short.

With the supervision of the SEC and the reduction of shareholder Softbank, Ma Yun was at the helm.

The group can be seen as a curse.

Short positions have set a record high, and traders are looking at this fast-growing China.

The giants have never seen a drop.

According to the data gathered by foreign media and Markit, last week, Alibaba's short positions were more than 124 million shares, the highest level since 2014 IPO, far higher than that of last year's December share of about 60 million shares.

JimChanos and JohnHempton, the famous short sellers, have been raising the red flag to Alibaba for several months. They believe that the growth figures of the company are so good that they are doubtful of their authenticity.

As the company disclosed its regulatory investigation of China's logistics business and Softbank disclosed its planned reduction of $10 billion shares, investors' short selling to Alibaba has increased rapidly in the past two weeks.

WedbushSecuritiesInc. analyst GilLuria said, "the accumulation of various factors has made short selling Alibaba more attractive, and SEC's investigation and Softbank's reduction are even worse.

If SEC finds that Alibaba accounts are inaccurate and Alibaba is forced to reevaluate its performance, it will be very bad.

Alibaba is so well-known that this may cast a bigger shadow on Chinese Listed Companies in the US. "

Alibaba raised $25 billion in IPO in September 2014, setting a new global IPO record.

The company claims that its market share in China's electricity market exceeded 75% in 2015.

Traders in New York scrambled for shares in the company, hoping to seize the opportunity to earn money from China's growing middle class.

Since the Alibaba announced the SEC investigation in May 25th, its stock price has fallen by 6.4% to $75.92 per share.

The survey focused on the company's parallel operation, related party pactions and the "double 11" sales promotion data.

Guo Qi, an analyst with MScience in New York, said: "although Softbank's reduction is part of its grand strategy, it is to increase investment in start-ups and improve its heavily indebted balance sheets, but this measure has made investors uneasy because Softbank shares Alibaba 16 years ago."

However, most of Alibaba's analysts are still bullish.

Data show that 37 analysts recommend "buy", 6 analysts rating "hold", no "sell" rating.

The company's first quarter revenue of 24 billion 200 million yuan (US $3 billion 700 million) was better than expected. In the first quarter, the volume of e-commerce pactions exceeded 3 trillion yuan.

Ma Yun's friendship with Sun Zhengyi looked at the boat.

Over the past three days, it is estimated that many people are trying to figure out how big the psychological shadow area of AlibabaGroup (Alibaba) and Ma Yun is (BABA).

From June 1st -3, Limited by Share Ltd (SoftBankGroupCorp., 9984.TO) of Japan Softbank group adjusted its number of Alibaba shares for the three time.

From 7 billion 900 million dollars to 8 billion 900 million dollars to 10 billion dollars.

June 1st

Softbank and Alibaba announced at the same time that Softbank sold $7 billion 900 million worth of Alibaba shares for capital structure and reduced debt scale, and announced specific plans for the sale, including Alibaba's repurchase of $2 billion, and Alibaba partners' repurchase of $400 million, which has been fully understood by the outside world.

June 2nd

Softbank suddenly changed its voice.

Softbank reported that Softbank increased the sale of Alibaba shares from US $7 billion 900 million to US $8 billion 900 million, increasing the sale scale of US $1 billion.

1) Alibaba intends to buy 27 million shares of Alibaba shares from Softbank at 74 US dollars per share, with a face value of about $2 billion.

2) Alibaba partners agreed to purchase 5405405 shares of Alibaba shares from Softbank at $74 per share, with a face value of about $400 million.

3) Softbank agreed to sell $500 million Alibaba shares to GAMLIGHT and ARANDA respectively.

4) Softbank sells another 5 billion 500 million US dollar convertible Alibaba stock backed securities for an extended period of three years, with a coupon rate of 5.75% and a 17.5% premium on the securities.

June 3rd

Softbank changed again.

Similarly, according to the news released by Bloomberg, Softbank announced once again that it has fully exercised the right to purchase an additional 20% Trust Securities, which is worth 1 billion 100 million US dollars and can be converted to Alibaba stock, thus raising the scale of convertible bonds to US $6 billion 600 million. Therefore, the amount of Alibaba stock sold will be raised to 10 billion US dollars as a whole.

Softbank itself, as a major shareholder of Alibaba, held 797742980 shares of Alibaba shares before the sale plan, accounting for 32% of its total shares.

After the $7 billion 900 million sale plan announced in June 1st, its shares fell from 32% to 28%, and roughly calculated that after selling 10 billion dollars worth of shares of Alibaba, its Alibaba shares would be reduced to about 27%, still far higher than the 15% share needed to have their seats on the board of Alibaba.