One of China’s most influential fintech companies, Ant’s nestsaid on Saturday that the billionaire businessman, Jack Ma, planned to give up control of the company.
Ma’s withdrawal from the company he founded comes after the ruling Communist Party launched an unprecedented crackdown on Big Tech. Beijing has made Mr. Ma’s Ant Group and its sister company, e-commerce giant Alibaba, the crown jewels of his online empire. initial goals in the campaign to curb the power of the internet giants.
Chinese officials forced Ant Group to cancel its initial public offering in 2020 and then alibaba is fined a whopping $2.8 billion for abusing its dominance. Last year, Ant Group said it would undertake a major overhaul of its business under a government order to address the regulator’s concerns about unfair competition and large amounts of data. that they collect about users.
Under Xi Jinping, China’s top leader, Beijing has sought to strengthen state control over the economy in recent years, including curbing the influence of tycoons. people who have accumulated huge wealth but are considered to have exceeded their limits.
Mr. Ma was once hailed in China as a role model for success, but he faces growing trouble with the Chinese government, especially after he criticized the country’s banking regulators. this house at the end of 2019. In recent years, he almost did not appear in public.
Ant’s nest said in an announcement on Saturday that Mr. Ma would no longer be a “controller” holding a 34% stake in the company. Instead, he will be one of the 10 major shareholders.
The announcement describes the move as part of a plan to “optimize corporate governance,” gives no details on when the changes will be finalized, and notes that they won’t affect the company. day-to-day operations of the company. Under Ant Group’s current governance structure, Mr. Ma has no management role.
Ant’s flagship Alipay app is a major portal for more than 1 billion users in China who use it to pay for meals, shop with credit, and accumulate savings. But its influence and scale make it the focus of concern in Beijing as authorities scrutinize the fintech industry for potential risks to the country’s broader financial system. water. Then in 2020, right before that Ant has been set to publicsudden governing body stop Its initial public offering, estimated at the time at $34 billion, would be the largest IPO on record.
It is unclear how Ma’s withdrawal from Ant Group might affect any plans the fintech giant may have to resume its initial public offering. But it will probably be delayed because of the listing requirement. The Hong Kong Stock Exchange requires a one-year waiting period following a change of ownership; Other markets require two or three years.
Ant Group has been working to restructure its companies at the request of the Chinese authorities. Last month, the regulator acceptance plans to raise $1.5 billion in capital for its consumer lending unit, allowing an arm of the Hangzhou government to become its second-largest shareholder. The capital raise overcomes a key regulatory hurdle, allowing it to issue an estimated 500 billion yuan ($73 billion) worth of consumer loans.
The approval is the latest sign that the Chinese government is ready to loosen its tough stance on internet companies in an effort to restart economic activity by 2023.
After a long rigorous period”no covidLi Qiang, the new No. 2 official of the Communist Party, in an economic meeting in December urged officials in an economic meeting in December to “vigorously develop the digital economy.” and improve their global competitiveness.
King of Death Contributing research.
