Alibaba's stock prices dipped after Chinese authorities took action against an individual surnamed Ma, but recovered when it was clarified that this person was not the company's founder.

A man in Hangzhou was taken into custody for activities on the internet that endangered national security.

The broadcaster later revised the article to make clear that the individual in question was not billionaire Alibaba founder Jack Ma.

Alibaba did not immediately respond to a Reuters request for comment on the media report.

Alibaba stock dropped in early trading, but later pared its losses.

Some people believed that a man with the surname Ma in Hangzhou helped an investigation, which caused panic in the stock market, but this was clarified and the market calmed down.

Chinese internet companies have been under pressure from regulators in the last couple of years.

Authorities cracked down on Ma's business empire after he gave a speech accusing financial watchdogs of stifling innovation.

Ant Group, a fintech firm founded by Jack Ma, had its $37 billion listing suspended in 2020 due to regulatory investigations.

Ma has been keeping a low public profile since the crackdown began.