The Chinese billionaire is set to hand over most of voting percentage to avoid overall control of the Ant group. In a statement released on Saturday, Jack Ma’s company announced changes that have taken place in the ownership structure that would prevent any shareholder, acting alone or in collaboration with other parties, from controlling Ant Group.
Chinese Government Crackdowns
The decision has been announced in the light of aggression by the Chinese government. He was targeted by the government after he criticized China’s financial regulators in 2020. Right after the criticism, The Ant Group was delisted from the stock market by the Shanghai Stock Exchange. Alibaba was also hit with a $2.75 billion fine for being involved in unfair practices.
According to a statement, Ma’s prior ownership of more than 50% of the voting rights will be lowered to 6.2%. The decision was announced to “enhance the stability,” the statement said.