Following news that Ant founder Jack Ma will relinquish control of the fintech behemoth following an overhaul, shares of listed Chinese firms with Ant Group as a significant stakeholder increased on Monday.
Along with Longshine Technology Group Co Ltd (300682.SZ), Jilin Zhengyuan (003029.SZ), Shanghai Golden Bridge Infotech Co (603918.SS), Orbbec Inc (688322.SS), and Hundsun Technologies (600570.SS), all of these companies saw an increase in share prices. Ant indirectly has holdings in those businesses ranging from little more than 5% to more than 20%.
Jack Ma, the company’s founder, will relinquish control of it, Ant announced over the weekend. The reform aims to put an end to the regulatory blitz that began as soon as its massive stock market launch was derailed two years ago.
Jack Ma’s decision to relinquish control of Ant and other companies, according to Redmond Wong, Greater China market analyst at Saxo Markets, Hong Kong, will help reduce some uncertainty and open the door for the group’s company to grow and flourish.
“It should have removed some of the authorities’ concerns about the group as the change was likely a negotiated outcome with the authorities,” Wong said. “And investor sentiment towards the China internet sector is likely to improve further.”
The rectification of the financial operations of 14 platform companies has “basically been completed,” according to Guo Shuqing, head of China’s Banking and Insurance Regulatory Commission (CBIRC), in an interview with the country’s official Xinhua news agency that was published on January 7. However, there are still a few issues that need to be resolved. Guo did not mention the brands.
