According to Reuters, Ant Financial is investigating how its founder, billionaire Jack Ma, will sell his shares and transfer control of the company to others because, according to Chinese regulators, the move may Reduce Beijing’s ongoing supervision of the business. It has to do with the situation.
The Wall Street Journal previously reported that Jack Ma proposed to sell part of Anta’s shares to the Chinese government at a meeting with regulators in November.
From January to March, representatives of the Central Bank, the National Bank of China (PBOC) and the Bank of China and the Insurance Regulatory Agency (CBIRC) had conversations with Mao and Ant respectively. Reuters.
Ant denied that it was considering selling Mao’s shares.
An Anta spokesperson said: “The acquisition of shares in Ant Group from Mao Zedong has never been a topic of discussion.”
Another source who is also connected to Ant told Reuters that Chairman Mao’s supervisors stated that they will not be allowed to sell their shares to groups or individuals with whom they have a close cooperation relationship, but must leave the company completely. Another option is to transfer its shares to state-owned Chinese investors.
Sources said that any of these measures requires Beijing’s approval.
Recall that Jack Ma publicly criticized Chinese regulators in a speech last October. His departure from Anta will revive some important company plans, which were suspended after questionable speeches.
In a controversial speech in Shanghai on October 24, Jack Ma criticized China’s stifling regulatory system and compared global banking rules with the “older club.”
Ma Yun said in his speech: “Today’s financial system is a legacy of the industrial age. We need to build a new system for the next generation and young people. We need to reform the current system.”
Just a week later, Ant’s initial public offering (valuation at a record $37 billion), which had been approved by the China Securities and Exchange Commission, was suspended. Following Mao Zedong’s speech, the Chinese government initiated a series of investigations and new regulations, which have affected most of the country’s technical fields.
Jack Ma, 56, also the founder of Alibaba, disappeared from public life for three months after the Chinese authorities made this response. He appeared briefly in January, but then retreated to private space.
On April 10 this year, Chinese regulators imposed a fine of 18.23 billion yuan (US$2.79 billion) on Alibaba for abusing market dominance and violating free competition laws.
The regulator pointed out that the State Administration for Market Regulation has determined through investigations that Alibaba has abused its dominant position in the market for many years, thereby preventing certain sellers from using other trading platforms.
A few days later, the central bank asked Ante to become a holding company, thereby making Ante subject to certain banking rules, which may prevent its further development.