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First on CNBC: CNBC Transcript: Alibaba Founder & Executive Chairman Jack Ma Speaks with CNBC's "Squawk on the Street" Today

WHEN: Today, Friday, September 19th

WHERE: CNBC's "Squawk on the Street"

Following is the unofficial transcript of a FIRST ON CNBC interview with Alibaba Founder & Executive Chairman Jack Ma on CNBC's "Squawk on the Street" live from Post 9 at the New York Stock Exchange today, Friday, September 19th. Video from the interview is available on CNBC.com.

All references must be sourced to CNBC.

CARL QUINTANILLA: THAT WAS FAST. JACK WELCOME.

JACK MA: THANK YOU VERY MUCH.

JIM CRAMER: EXCUSE MY REACH. THANK YOU SIR.

JACK MA: THANK YOU.

DAVID FABER: JACK GOOD TO SEE YOU. WE ARE GOING TO MIC YOU UP AND START TALKING IF YOU DON'T MIND. IT IS OF COURSE A HISTORIC DAY HERE ON WALL STREET AND FRESH MAN THAT WAS FAST OFF RINGING THE OPENING BELL OF COURSE HE WASN'T ACTUALLY RINGING YOU WERE WATCHING YOUR CUSTOMERS UP ON THE PLATFORM RING THE OPENING BELL. MANY TIMES OVER THE LAST FEW YEARS WHEN YOU HAVE BEEN INTERVIEWED YOU'VE TALKED ABOUT THE DIFFERENT CONSTITUENCIES YOU HAVE AT ALIBABA. YOU ALWAYS SAY NUMBER ONE CUSTOMER, NUMBER TWO EMPLOYEES, NUMBER THREE SHAREHOLDERS. YOU'VE GOT A LOT MORE SHAREHOLDERS TODAY IS THAT GOING TO CHANGE AT ALL IN ANY WAY THE WAY YOU VIEW YOUR BUSINESS OR RUN YOUR BUSINESS?

MA: I THINK STILL AS I ALWAYS BELIEVE THAT CUSTOMER NUMBER ONE, EMPLOYEE NUMBER TWO AND SHAREHOLDER NUMBER THREE. BUT TODAY WHAT WE GOT IS NOT MONEY WHAT WE GOT IS THE TRUST FROM THE PEOPLE. MILLIONS OF SMALL BUSINESSES, SO MANY SHAREHOLDERS I AM VERY HONORED AND SO EXCITED BECAUSE WHEN YOU SEE THESE SHAREHOLDERS THE RESPONSIBILITY I'VE BEEN THINKING ABOUT THE NEXT FIVE TO TEN YEARS HOW I CAN MAKE SURE THESE SHAREHOLDERS ARE HAPPY. IT IS A VERY IMPORTANT THING TO MAKE THESE GUYS THE PEOPLE STANDING THERE IF THEY ARE SUCCESSFUL WE ALL WILL BE HAPPY. THAT IS WHAT I BELIEVE.

FABER: SOMETHING ELSE YOU WILL HAVE A LOT OF TODAY IS MONEY. FIFTEEN BILLION OR MORE RAISED BY THE COMPANY NOT TO MENTION A CURRENCY WHICH WE ARE GOING TO WATCH OPEN HERE IN PROBABLY A COUPLE OF HOURS THAT YOU CONCEIVABLY CAN USE. HOW DO YOU VIEW THAT STRATEGICALLY FOR ALIBABA ARE YOU GOING TO BE BUYING A LOT OF THINGS POTENTIALLY OUTSIDE OF CHINA? GIVE US SOME SENSE HERE IN TERMS OF YOUR THOUGHTS NOW THAT YOU WILL HAVE AN AWFUL LOT OF MONEY AT YOUR DISPOSAL AND OF COURSE A STOCK PRICE THAT CONCEIVABLY IS GOING TO BE VERY HIGHLY VALUED.

MA: WELL I THINK FOR ME AS AN ENTREPRENEUR, THE INSTINCT OF ENTREPRENEUR IS TRY TO BUILD THE THINGS YOURSELF AND I THINK THERE ARE SO MANY THINGS WE HAVE TO DO WITH OUR ECOSYSTEM. NOT ONLY ARE WE HELPING SMALL BUSINESS IN CHINA I THINK SMALL BUSINESS IN AFRICA, IN SOUTHEAST ASIA, IN EUROPE, IN THE STATES A LOT FARMERS NEED HELP SO I THINK THE MONEY WILL BE SPENT THERE. THE TECHNOLOGY, IF WE WANT TO ACQUIRE IT, WE WANT TO ACQUIRE AND BUY THIS COMPANIES TO HELP THE ECOSYSTEM THAT CAN HELP THE SMALL BUSINESSES.

QUINTANILLA: CAN YOU WALK US THROUGH WHERE YOUR HEAD IS ON THE PRICING IS THIS WHERE YOU WANTED IT? WHY DIDN'T YOU GO HIGHER A LOT OF PEOPLE SAID IT IS WORTH MORE AND WILL BE WORTH MORE TODAY?

MA: I THINK THAT'S THE BANK'S DECISION, THAT'S MY SALEFORCE'S DECISION, MY TEAM DECISION AND TO ME I JUST GIVE THEM, I DON'T WANT TO DISAPPOINT THE SHAREHOLDERS I WANT TO MAKE SURE THEY ARE MAKING MONEY. AND I'M SURE, AND I REALLY WANT TO TELL THE TEAM THAT SHAREHOLDER NUMBER THREE, THAT'S NOT A MAIN, IT'S A DISCRIMINATION. WE RESPECT WE ARE VERY THANKFUL FROM THE HEART. BUT THE THING WE DO BETTER IS WHEN YOU REALLY CARE ABOUT THE CUSTOMERS, YOU REALLY MAKE THOSE INNOVATIVE YOUNG PEOPLE SUCCESSFUL. THE SHAREHOLDERS WILL BE HAPPY SO TO ME THE PRICE UP AND DOWN. MY PEOPLE WORRY ABOUT IT. I WORRY ABOUT WHETHER THE CUSTOMER HAPPY.

CRAMER: LET ME ASK YOU. THIS IS A GREAT AMERICAN STORY THAT'S ACTUALLY A CHINESE STORY. WHO ARE YOUR HEROS?

MA: WHO ARE MY HEROES?

CRAMER: YES.

MA: WELL, I GOT MY STORY, MY DREAM FROM AMERICA. A FULL 15 YEARS AGO WHEN I CAME TO AMERICA, WHEN I VISIT SILICON VALLEY. I SAW IN THE EVENING THE ROAD WAS FULL OF CARS, ALL THE BUILDINGS WITH LIGHTS. THAT'S THE PASSION. THE HERO I HAD IS FORREST GUMP. 14 YEARS AGO.

CRAMER; A BOX OF CHOCOLATES?

FABER: YOU KNOW HE IS A FICTIONAL CHARACTER?

MA: I LIKE THAT GUY. I'VE BEEN WATCHING THAT MOVIE FOR ABOUT TEN TIMES. EVERY TIME I GET FRUSTRATED, I WATCH THE MOVIE. I WATCH THE MOVIE BEFORE I CAME HERE AGAIN FOR COMING TO NEW YORK. I WATCHED THE MOVIE AGAIN TELLING ME THAT NO MATTER WHATEVER CHANGED, YOU ARE YOU. I'M STILL THE GUY 15 YEARS AGO, YOU KNOW, I ONLY EARN LIKE $20 A MONTH. TODAY I CAN DO THAT MUCH.

CRAMER: WHAT DOES IT MEAN FOR THE PEOPLE'S REPUBLIC OF CHINA?

MA: I THINK WE ARE GIVING A LOT OF PEOPLE INSPIRATION. WE WANT TO ENCOURAGE A LOT OF PEOPLE SAYING, YES. ONE OF THE THINGS I WANT TO DO, 15 YEARS AGO I TOLD MY PEOPLE IN MY APARTMENT THAT IF JACK MA AND PEOPLE LIKE US CAN BE SUCCESSFUL, 80% OF THE PEOPLE IN CHINA CAN BE SUCCESSFUL. AND 80% OF THE YOUNG PEOPLE IN THE WORLD CAN BE SUCCESSFUL. WE DO NOT HAVE THE RICH DADDY, POWERFUL UNCLE. WE DO FROM NOTHING. SO THAT'S WHAT IT MEANS FOR CHINA.

QUINTANILLA: WHAT WOULD YOU SAY TO AN AMERICAN INVESTOR WHO IS REALLY INTERESTED IN YOUR COMPANY AND THE GROWTH OPPORTUNITY, BUT WORRIES ABOUT INTERFERENCE FROM THE GOVERNMENT, TRANSPARENCY, BOOKS, REGULATORS WE DON'T UNDERSTAND? HOW DO WE GET AROUND ALL OF THAT?

MA: TRUST. TRUST US, TRUST THE MARKET, AND TRUST THE YOUNG PEOPLE. TRUST THE NEW TECHNOLOGY. THE WORLD IS GETTING MORE TRANSPARENT. EVERYTHING YOU WORRY ABOUT, I'VE BEEN WORRYING ABOUT IN THE PAST 15 YEARS. EVERYTHING YOU WORRY ABOUT, I'VE BEEN GOING THROUGH THIS TOUGH 15 YEARS. THAT'S NOT EASY. AND WE ARE READY TO WORK FOR ANOTHER 87 YEARS. I WANT TO TELL THE INVESTORS, WE TAKE CARE OF THEM.

FABER: TRUST HAS TO BE EARNED, OF COURSE.

MA: BECAUSE WHEN YOU TRUST, EVERYTHING IS SIMPLE. IF YOU DON'T TRUST, THINGS GET COMPLICATED.

FABER: AND SO WHEN WE TALK ABOUT TRANSPARENCY, AND PEOPLE LOOK AT THE ALIPAY TRANSACTION WHICH GOT A GREAT DEAL OF PUBLICITY AT THAT TIME. CERTAINLY WAS NOT SOMETHING YAHOO WAS HAPPY ABOUT. HOW SHOULD WE VIEW THAT?

MA: WELL SOME DAY. SOME OF THE PEOPLE WILL FIND OUT. TODAY IS NOT TIME. I WOULD SAY, I'VE 25,000 SMART PEOPLE. IF I DO ANYTHING WRONG, I'M TRANSPARENT. I'LL PUT THAT COMPANY INTO MY POCKET. WHY I KEEP ON TELLING VISION ABOUT IT FOR 15 YEARS. PEOPLE BELIEVE US. AND WE ARE MAKIN SURE THE ECOSYSTEM SOMEBODY HAS TO MAKE TOUGH DECISIONS. AS A CEO, YOU BALANCING. I'M DOING THAT. AND I WANT TO SAY SOMEDAY WHEN PEOPLE REALIZED, WHEN PEOPLE KNOW THE REAL STORY, THEY WILL FEEL PROUD.

FABER: OK WELL FREE TO COME BACK AND TELL IT TO US WHEN YOU ARE READY.

MA: I FEEL PROUD. I WANT TO SAY ONE THING. THE DECISION FOR ALIPAY WAS ONE OF THE MOST PAINFUL DECISIONS I HAVE EVER MADE IN MY PAST 15 YEARS. BUSINESS CAREER. BUT THIS IS THE DECISION I FEEL MOST PROUD OF IN THE PAST 15 YEARS. THAT IS COURAGE. IT'S COURAGE, RESPONSIBILITY AND LEADERSHIP. SOMEBODY HAS TO MAKE THE TOUGH DECISIONS AND I DID IT.

FABER: RIGHT. JACK, WHEN I SPOKE TO INVESTORS WHO MET WITH YOUR TEAM AS THEY INVESTIGATED THE COMPANY, ALL OF THEM CAME OUT SAYING, OF COURSE, WE ARE GOING TO WANT TO OWN A LOT OF SHARES, BUT THEY STILL HAD OTHER QUESTIONS THAT DIDN'T GET ANSWERED. FOR EXAMPLE, YOUR LOGISTICS BUSINESS. YOU OWN 48% OF A LOGISTICS BUSINESS THAT IS ENORMOUS. YET IT'S NOT CONSOLIDATED AT ALL ON YOUR INCOME STATEMENT. SOME PEOPLE WORRY, WELL, WILL A DAY COME WHEN THAT HAS TO COME ONBOARD AND WHAT WILL THAT MEAN FOR WHAT WE ARE LOOKING AT IN TERMS OF THE NUMBERS AT ALIBABA?

MA: OK, THE GOOD THING IS A LOGISTIC SYSTEM IS NOT GOOD IN CHINA. THAT GIVES US OPPORTUNITY. IF IT IS ALREADY VERY SOPHISTICATED, THEN WHY WOULD THEY NEED US? ONE OF THE REASONS WHY E-COMMERCE IN CHINA GROW FASTER THAN THE USA, BECAUSE THE INFRASTRUCTURE OF COMMERCE IN CHINA WAS TOO BAD. AND THE USA E-COMMERCE CANNOT DO BETTER BECAUSE, YOU KNOW, IT'S A SUPPLEMENTARY. E-COMMERCE IN THE USA IS A DESSERT. AND IN CHINA BECOME A MAIN COURSE. AND LOGISTIC. WE ARE TALKING ABOUT A 27 MILLION PACKAGES IN CHINA TOTAL EVERY DAY. BUT WHAT WE WILL SEE IN TEN YEARS WILL BE 200 MILLION PACKAGES EVERY DAY. SO WE HAVE TO SOLVE THAT PROBLEM, NOT TODAY'S PROBLEM.

FABER: 200 MILLION PACKAGES A DAY?

MA: WHICH I THINK IN TEN YEARS.

CRAMER: JACK, I THINK THERE IS A MISPERCEPTION ALSO. I THINK PEOPLE SAY, WELL, IT IS AMAZON, BUT IF I HAVE AN IDEA FOR A COMPANY AND I HAVE A PRODUCT. I KNOW I CAN GO TO YOUR SITE AND I CAN FIND SOMEONE IN THE WORLD WHO WILL MANUFACTURE MY PRODUCT FOR FAR LESS. TALK ABOUT THE IDEA THAT THIS IS MAYBE THE GREAT ENTREPRENEURSHIP SITE OF ALL TIME.

MA: EXACTLY. THIS IS WHAT WE ARE DOING. WE WANT – OUR MISSION IS TO HELP IN DOING BUSINESS EASIER. SO WE ARE GIVING NOT ONLY TRAFFIC, WE GIVE TECHNOLOGY. WE GIVE LOGISTIC. WE GIVE – WE ALSO GIVE THE FINANCIAL SERVICE OF SMALL, MEDIUM SIZE. THEY DON'T WORRY ABOUT THAT BECAUSE WHEN I WAS DOING MY BUSINESS 15 YEARS AGO, NOBODY SUPPORTED US. SO TODAY, WE WANT TO BUILD UP THIS INFRASTRUCTURE. IF THERE'S ANYBODY – IF YOU HAVE IDEAS, COME TO OUR SITE. WORKING HARD. EVERYBODY IS A FAIR PLAY GAME.

CRAMER: BUT YOU ALSO CARE ABOUT MAKING SURE THAT THERE IS NO SLAVE LABOR INVOLVED.

MA: NO.

CRAMER: TALK ABOUT THAT BECAUSE THAT IS IMPORTANT. BECAUSE I DON'T WANT TO COMMUNICATE WITH SOMEONE WHERE I END UP IN A FACTORY THAT GLOBS US.

MA: YEAH. WE HAVE STRICT RULES TO SEE THAT AND ALSO, YOU KNOW, INTELLECTUAL PROPERTIES, AND COPYCATS AND FAKE PRODUCTS, THESE ARE HEADACHES OF THE WORLD. AND WE ARE SOLVING THAT. AND THE THING IS – YOU SEE 49% OF THE POWER CENTERS ON OUR SIDE ARE WOMEN. YOU KNOW, THE WOMAN ENTREPRENEUR IS COMING UP.

QUINTANILLA: A LOT OF THE CUSTOMERS TODAY WERE FEMALE.

MA: YEAH. WE WOULD NOT UNPURPOSEFULLY SELECTING FIVE OF THEM WOMEN. WE FEEL SO PROUD.

QUINTANILLA: HERE IS AN OBVIOUS QUESTION. ARE THERE AMERICAN COMPANIES ON YOUR SHOPPING LIST, AND WHICH ONES ARE THEY?

MA: WELL, I THINK THERE ARE A LOT OF AMERICAN COMPANIES I WOULD LIKE TO LEARN FROM. WHETHER THEY WOULD SELL, WE CAN BUY OR WE WORK TOGETHER, THAT'S NOT IMPORTANT. WHAT IS IMPORTANT IS THAT IF WE CAN WORK TOGETHER HELPING SMALL GUYS, I WOULD DO ANYTHING. BUT IF THEY THINK ABOUT MAKING MONEY, WELL, YOU KNOW, WE CAN ALLOW THEM. BUT HELPING SMALL BUSINESS, MAKING SURE THE ECOSYSTEM IS HEALTHY FOR THE SMALL BUSINESS. WE WILL DO ANYTHING.

CRAMER: JACK, WHERE IS CHINA RIGHT NOW? THE PRC HAS BEEN CUTTING THE REPO RATE LAST NIGHT. THEY HAVE BEEN DOING THESE BIG BANK INJECTIONS. WHERE IS THE – WE HAVE AN IMPRESSION THAT CHINA IS SLOWING. BUT IS THAT JUST THE EXPORT MARKET? IS THE CONSUMER DOING BETTER IN CHINA THAN WE REALIZE?

MA: OH, ABSOLUTELY. AND WE ARE HELPING THAT. THIS IS THE POWER OF TAOBAO. THE POWER OF ALIBABA. THE 300 BILLION SELLS EVERY YEAR. SO WE WANT TO GO THE COUNTRYSIDE AND MAKE SURE THEY ARE GROWING.

FABER: JACK, $300 BILLION IN GROSS MERCHANDISE VALUE. HOW BIG CAN ALIBABA BECOME?

MA: WELL, WE HAVE A DREAM WHICH PROBABLY, I'M NOT ABOUT TO SAY, BUT I THINK, WE VALUE THAT THE CHINA CHANCE TO BECOME – IN THE PAST 15 YEARS. AND WE HOPE IN THE NEXT 15 YEARS THE WORLD CHANGED BECAUSE OF US. WE WANT TO BE BIGGER THAN WALMART. WE WANT TO BE BIGGER. IT'S NOT THE SIZE. WE WANT TO LEARN FROM WALMART. THEY CHANGED THE BUSINESS LAST CENTURY. THEY STRESSED THE B2C. AND WE HOPE 15 YEARS LATER THEY SAY THIS IS A COMPANY LIKE MICROSOFT, LIKE IBM, LIKE WALMART. THEY CHANGED, SHAPED THE WORLD.

QUINTANILLA: WE HAVE TO LET YOU GO, BUT BEFORE WE DO, YOUR WORTH NOW OR WILL BE MORE THAN THE GDP OF ESTONIA. WHAT ARE YOU GOING TO DO WITH THAT MONEY?

MA: OH, WHAT WILL I DO WITH THE MONEY? STILL FOCUSING ON OUR MISSION.

QUINTANILLA: BUT YOUR OWN PERSONAL WEALTH.

MA: FOR ME? WELL, THIS IS A HEADACHE THING. I GUESS I'M GOING TO SPEND – WHEN I WAS, I THINK, 14 YEARS AGO I ASKED MY WIFE, DO YOU WANT YOUR HUSBAND TO BE A RICH MAN OR A RESPECTED BUSINESS GUY? SHE SAID, OF COURSE, A RESPECTED BUSINESS PERSON BECAUSE SHE NEVER THOUGHT I WOULD BE A RICH PERSON. WE WERE HAVING FUN EVEN. SO TODAY I THINK, AND THEN LATER I SAID BEFORE I'M 50 YEARS OLD MY JOB IS MAKING MONEY. HELPING OTHER PEOPLE MAKE MONEY. AFTER I'M 50 YEARS OLD WHICH IS TODAY 50 YEARS OLD, I AM SPENDING MONEY, TRYING TO MAKE SURE MORE PEOPLE GET RICH. BECAUSE YOU CANNOT SPEND A LOT OF MONEY, RIGHT? SO MY JOB IS SPENDING MONEY. HELPING OTHERS. THIS IS A HEADACHE.

FABER: JACK MA, THANK YOU. WE WILL BE FOLLOWING THE OPENING OF COURSE, OF ALIBABA VERY SOON.

QUINTANILLA: AND BY THE WAY, WHAT'S IN THE BOX?

MA: OH, YEAH. OKAY. THIS IS OUR T-SHIRT. THE SOUVENIR FOR ALIBABA LISTING. AND WE SAY EVERYBODY SHOULD HAVE A DREAM. AND THE BAG IS WHAT IF IT'S REALIZED? BECAUSE PEOPLE DON'T BELIEVE IN DREAMS ANY MORE. A LOT OF YOUNG PEOPLE. AND WE WANT TO TELL THEM, IT'S THE DREAMS THAT YOU HAVE TO KEEP. AND WE WANT EVERYBODY TO HAVE THIS DREAM. AND I WANT TO GIVE THIS AS A GIFT TO YOU.

QUINTANILLA: THANK YOU SO MUCH.

CRAMER: THANK YOU, SIR.

QUINTANILLA: PEOPLE ARE MAKING JOKES ON TWITTER ABOUT FORREST GUMP. THEY SAY LIEUTENANT DAN ON LINE ONE.

MA: THANK YOU.

FABER: JACK MA, THE CHAIRMAN OF THE ALIBABA GROUP. THANK YOU FOR JOINING US. WE LOOK FORWARD TO SEEING YOU AGAIN.

MA: OK. THANK YOU VERY MUCH. TAKE CARE.

QUINTANILLA: HAVE A GREAT DAY.

MA: THANK YOU.

QUINTANILLA: JACK MA, THE EXECUTIVE CHAIRMAN OF ALIBABA. TICKER BABA, GOING PUBLIC HERE AT THE NEW YORK STOCK EXCHANGE THIS MORNING.

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