- The e-commerce tycoon Jack Ma will relinquish control of Ant Group, the Chinese financial technology provider founded by him. The move is part of a larger “corporate governance optimization” plan aimed at making the company more appealing as a result of Beijing’s crackdown on technology conglomerates and regulatory tightening.
- On Friday, the Ant Group said that no single shareholder would have control over it after an ownership restructuring. As founder, Ma held over 50% of Ant's voting rights. After the restructure, however, Ma’s voting rights will drop to about 6%, according to calculations based on Ant's statement.
Why it matters
Despite this move, the Chinese authorities have recently begin easing on the tech crackdown in order to help its economy recover from Covid-19.