2021-05-09

4You Dialy

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Chinese Ant Group wants to get rid of the founder of Jack Ma

2 min read

The Chinese Giant Technology Giant Ant Group considers ways to encourage Jack Ma founder (Jack Ma) to sell its share in the company and refuse to control. The past meetings with Chinese regulators showed that such a step would like Beijing. At least, the Reuters Agency reported this with reference to its sources.

(Reuters | Aly Song)

The Wall Street Journal edition earlier reported that Mr. Ma offered in the November meeting with regulators to transfer part of the ant under the control of the Chinese government. Officials from the People’s Bank of China (NBK) and the Commission for Regulating Banking Activities of China (KRRD) held negotiations from January to March separately with Jack Ma and Ant, where the possibility of a magnate from the company was discussed.

ANT denies that the issue of selling the share of Mr. Ma has ever been considered. “The deprivation of Jack Ma Loli in Ant Group has never been discussed with anyone,” the representative of the Chinese financial and technological giant said. Nevertheless, the sources of Reuters claim that the Ant Group hopes to buy out the share of Jack Ma, assessed by billions of dollars, with the help of its own current investors or parent alibaba without attracting any external organization.

(Reuters | Yuya Shino)

(Re-RS | Yoshino)

However, as reported, during the negotiations, regulators did not allow Mr. Ma to sell his share of any close to him or a physical person, and they demanded full care or transfer to the Chinese investor affiliated with the state.

All this happens after the intense pressure of regulators on the business empire of Mr. Ma, which began with the suspension of the initial public offering of the company’s shares in November. Ant stood on the verge of selling stocks and placement on the stock exchange. The IPO on Hong Kong and Shanghai stock exchanges was estimated in the amount of more than 4 billion. However, China’s authorities closed the deal after Jack Ma publicly criticized financial regulators. In January, the Ant Group announced plans to fully comply with the financial rules of China, turning into a financial holding company – a relatively new type of commercial structures that have a significant impact on the financial market of China.

(Reuters | Charles Platiau)

(Reuters | Charles Platurau)

Ant Group, who owns the alipay omnipresent mobile payment, should be corrected that the regulators call unfair competition in their payment business, and improve their corporate governance. As the Central Bank stated, Ant will also be obliged to abandon the information monopoly on the details of their users collected by the company.

Apparently, the care of Jack Ma is another requirement of the authorities of China, the execution of which will allow to return to the idea of ​​the IPO. These are serious consequences for the 56-year-old Mr. Ma, who also founded Alibaba and once enjoyed a cult status in China.

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