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Jack Ma’s move to relinquish control at Ant Group further eases tensions between Beijing and Big Tech, analysts say

  • The move is seen as a fresh sign that the Chinese government is ending its regulatory campaign against the country’s Big Tech firms
  • Alibaba’s CEO Daniel Zhang said in an interview with state television that Alibaba is happy to see Beijing’s recent support for the platform economy

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Billionaire founder Jack Ma will no longer hold control over Ant Group. Photo: AFP
Tracy Quin Shanghai,Iris Dengin ShenzhenandAnn Caoin Shanghai

Jack Ma’s decision to relinquish absolute control of Ant Group marks a key step forward in the fintech group’s restructuring process and an easing of tensions between Beijing and China’s Big Tech companies, analysts say.

While the planned voting rights changes at Hangzhou Junhan and Hangzhou Junao, the two vehicles which jointly hold 53.5 per cent of Ant Group, do not change Ant Group’s existing ownership, Ma will see his voting power diluted so that no single shareholder will have control of Ant. Ant is a fintech spin-off from Alibaba Group Holding, which also owns the South China Morning Post.

The move, which comes two years after a mega initial public offering plan by Ant in Shanghai and Hong Kong was called off at the last minute, is seen as a fresh sign that the Chinese government is ending its regulatory campaign against the country’s Big Tech firms. Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, said in an interview with the official Xinhua news agency over the weekend that the regulatory “rectification” of financial platforms “has basically completed”.

Alibaba’s share price gained 9 per cent on Monday in Hong Kong to close at HK$110.4.

Alibaba’s chairman and chief executive Daniel Zhang Yong said in an interview with the state television that Alibaba is happy to see Beijing’s recent support for the platform economy, and that the company will focus more on integration of the real and digital economies in the year ahead.

“For Alibaba, we are very happy to see expectations for the platform economy raised … such as how the platform economy can lead development, create jobs, and compete internationally,” Zhang said in an interview with CCTV over the weekend. Zhang did not mention Ant Group or Alibaba founder Jack Ma.

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