This restructuring of the payment subsidiary of the e-commerce giant Alibaba comes after Beijing has multiplied the blows against large companies in the technology sector.
The founder and former boss of the Chinese e-commerce giant Alibaba, Jack Ma, will cede control of fintech company Ant Group as part of a restructuring, the company announced on Saturday, January 7. “No shareholder, alone or jointly with other parties, will have control of Ant Group after making the adjustment, the company said in a statement.
“This adjustment is implemented to further strengthen the stability of our corporate structure and the sustainability of our long-term development.The statement exposed the company’s previous complex structure, which showed that Jack Ma controlled “indirectly» 53.46% of the shares of Ant Group. “Accordingly, Mr. Jack Ma (was) considered to be the controlling person of Ant Group prior to the adjustmentaccording to the group’s press release.
The communist regime has multiplied the blows
Since the end of 2020, the communist regime has multiplied the blows against large companies in the technology sector, prevented from raising money internationally or fined for abuse of a dominant position.
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In 2020, they blocked the last-minute IPO of Ant Group, the payment subsidiary of Chinese e-commerce giant Alibaba, on the Hong Kong stock exchange. Beijing also fined Alibaba a record $2.75 billion over alleged unfair practices.
This week, authorities announced that Ant Group had obtained approval to raise 10.5 billion yuan ($1.5 billion) for its consumer credit arm, another sign that authorities may be loosening their grip on the company.