Alibaba shares soared above 8% and hit six-month highs after its founder, Jack Ma, finally relinquished control of the techno-financial subsidiary Ant Group.
This is the Chinese fintech whose IPO was halted in 2020 by the Beijing authorities. This would end the agreements that had allowed Ma to maintain a dominant position within Ant Group's corporate governance structure.
Alibaba announced last Saturday - in a public statement - a full-size readjustment in the voting rights structure, diluting Ma's power, to make the company more transparent and diversified.
This decision is an essential step in the company's internal reorganization process.
Ant Group gives 10 people, including the founder, management, and employees, independent voting rights.
After the restructuring, the major shareholders will exercise their voting rights independently. So no single shareholder will have, alone or jointly with another shareholder, the power to control directly or indirectly the whole company.
Despite this, Alibaba still holds a third of Ant Group's shares, according to the Hong Kong newspaper South China Morning Post, owned precisely by the conglomerate.
Although the fintech communicated this weekend that several of its executives left the parent company's governing body to strengthen the subsidiary's independence.
Ant Group, a global technology provider created as a subsidiary of Chinese e-commerce giant Alibaba, is the operator of Alipay, the world's largest digital payments platform with hundreds of millions of monthly users in China and beyond.
Its expected debut in the financial market was suddenly halted by a decision of the Chinese authorities in a campaign of scrutiny that has resulted in several sanctions against large companies.
Overall, it seems that the near future looks bright for the Chinese tech giant.
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