After China's crackdown, Jack Ma to relinquish control of Ant Group

 

After the firm's shareholders accepted a series of amendments that would have seen Ant Group founder Jack Ma give up the bulk of his voting rights, the Chinese fintech giant will no longer be under Jack Ma's control, the business announced on Saturday.

The action represents yet another significant shift following a regulatory crackdown that derailed Ant's $37 billion IPO in late 2020 and forced the financial technology giant to undergo a forced restructuring.

"The decision by Jack Ma to leave Ant, a firm he established, demonstrates the Chinese government's resolve to lessen the influence of powerful private investors. The most productive sectors of theChinese economy will continue to deteriorate as a result of this trend "Orient Capital Research's managing director, Andre Collier, is based in Hong Kong.

Despite government assertions to the contrary, he continued, "Ant presented no risk to the banking system and was successful in securing loans for small firms, one of the key factors in economic growth."

According to Duncan Clark, Chairman of the Beijing-based investment advisory firm BDA, "Of course, it's important if he's no longer the majority shareholder. Theoretically, if the other major issue - oversight/ownership of data - is also overcome, this should open the road for an IPO."

"With the Chinese economy in such a tumultuous situation, the government is trying to show that it is committed to growth, and as we all know, the tech and private sectors are crucial to that. After a protracted period of uncertainty, Ant investors at least have a schedule for a departure."

Weiheng Chen, the Partner and Head of Greater China, Practice at law firm Wilson Sonsini, Hong Kong, stated: "Ant Group's IPO process could be further delayed if these voting arrangement adjustments are regarded to be a change-of-control event under the A share and/or Hong Kong listing requirements.