2023-01-10
Jack Ma the most famous technology tycoon of China and the founder
of Ant Group lost control over his company he founded. Ant Group’s shareholders
agreed to arrange shareholding restructuring. There is no plan for IPO to raise
new funds.
After restructuring Ma’s voting rights will be reduced to $6.2.
Previously he held 53.46% stake in Ant Group that gave him full control of the company. Ant Group’s new structure will appoint 10 voting powers, compose of the
company’s founders, executives, and employees; each of the voting power have
the right to vote independently from each other.
Jack Ma has been facing with regulatory crackdowns by Xi Jingping’s
government for many times. Chinese government halted Ant’s $37 billion IPO in
late 2020. It also fines Alibaba for $2.8 billion on Anti-Trust
case. In one of the cases, Alibaba forced merchants to sell products only on Alibaba’s
platform.
Many analysts view regulatory crackdowns more than just an
attempt to create free and fair competition for Chinese economy. Currently, Chinese
government is making sure that there will be no company that hold too much
power in financial sector, besides Chinese government itself.
