Alibaba Group Holding Ltd BABA shares are trading higher Monday after co-founder Jack Ma gave up control of major Chinese fintech company Ant Group.
What Happened: Ant Group announced it will implement several initiatives in order to continue to optimize its corporate governance and achieve long-term sustainable development. The main initiative focuses on adjusting the upper-tier shareholding structure of Ant Group.
“The main result of the adjustment will be to change the exercise of voting rights of Ant Group’s major shareholders, from Mr. Jack Ma exercising voting rights jointly with persons acting in concert, to each of ten individuals exercising their voting rights independently,” the company said in a release.
Ant Group was set to list publicly in 2020 before it received pushback from regulators, which sparked a crackdown on the entire industry. Recent developments are a potential sign that the government is easing its stance. Ant Group is an affiliate of Alibaba.
Alibaba operates China’s online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).
See Also: Xi Jinping Reportedly Asks China Army To ‘Concentrate All Energy On Fighting A War’
BABA Price Action: Alibaba has a 52-week high of $138.70 and a 52-week low of $58.01.
The stock was up 5.45% at $113.25 at time of publication, according to Benzinga Pro.
Photo: courtesy of Alibaba.
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