From Investing.com:

Ant Group has successfully removed controlling stakeholders, including its co-founder Jack Ma, in response to Chinese regulatory pressure. The People’s Bank of China confirmed the removal of any actual controller from the company’s flagship payment platform, Alipay. Ant Group’s future remains uncertain as it navigates potential relisting plans and continued regulatory approval.

Jack Ma, co-founder of Ant Group and Alibaba, initiated this withdrawal to align with Chinese regulations. Ant Group’s restructuring will grant voting rights to a group of executives and employees, effectively diluting Ma’s control while maintaining economic interests of shareholders. The move comes after intense regulatory pressure and concerns about Ant’s market power and systemic risks.

The central bank’s action signifies the implementation of Ant’s restructuring plan and marks a significant change in governance and power dynamics. It also represents a major concession to regulators and sets a precedent for potential further regulation in the tech sector. The restructuring will not impact Ant’s day-to-day operations but signals a potential easing of regulatory pressures.

The PBOC’s endorsement of the restructuring marks a crucial milestone for Ant Group. Despite significant corporate governance changes, an Ant spokesperson assured that the transition would not impact daily business operations. This assurance suggests a smooth continuation of Ant Group’s services and business activities despite the major changes at the top.

This restructuring at Ant Group represents a pivotal moment in the Chinese financial sector, reflecting the ongoing evolution of corporate governance in response to regulatory scrutiny. It also underscores the shifting dynamics in China’s tech and finance industries, where companies are increasingly adapting to new regulatory landscapes.



Read more: Major Shift at Ant Group as PBOC Confirms End of Jack Ma’s Control By Quiver Quantitative