Prominent investor Carson Block has warned that Chinese shares are "uninvestible" following the disappearance of billionaire Alibaba founder Jack Ma, Daily Mail UK reported.
As per the report, Block, one of the world's best-known activist investors, said Ma's disappearance is "just one of the reasons" he is betting against Chinese firms.
He said his main concern is dodgy accounting practices, but he also hit out at poor oversight of the way companies are run and the huge power of the Chinese regime over the country's firms.
Shares in Alibaba have fallen by around 25 per cent since October, when founder Ma made critical comments about China's regulator and state-owned banks. Weeks later, the flotation of Ma's financial services firm Ant Group was cancelled by the Chinese authorities.
Jack Ma goes missing; China suffers
Jack Ma, a former English teacher who became the international poster boy for Chinese e-commerce, has made no public appearances since his comments in October, the report said.
Block told The Mail on Sunday: "Jack Ma's inability to be seen in public is just one of the reasons why we believe China equities are uninvestible".
Reports indicate that recent developments are proof of China's resolve to nationalize Alibaba. Song Qing, Internet finance industry insider, said the investigation is part of CCP plans to nationalize both Ant Group and Alibaba.
"There will definitely be an outcome, now that they have started the investigation ... This is probably coming from the highest levels," he told Radio Free Asia.
The suggestions are that the plan to nationalize Alibaba has come from the very top of the ruling Communist Party structure, I B Times reported. A few days ago, the People's Daily, the official mouthpiece of the CCP, said the government's "anti-monopoly work" will lead to "better development."
The paper said the party Politburo thought 'anti-monopoly work' should be strengthened to prevent the disorderly expansion of capital.
Song Qing agrees with the view. "Just a couple of weeks ago, they set out plans to nationalize Ant Group and Alibaba; the timing was deliberate ... Those plans all came from the central leadership," he said.
Reports from China indicate that the Chinese government may be working on a plan to nationalize Jack Ma's Alibaba and the Ant Group. China's ruling Chinese Communist Party (CCP) has gone further ahead with the antitrust investigation into e-commerce giant Alibaba, IBTimes reported.
(With inputs from IANS)