• Several Ant-linked firms experienced a sharp rise in the value of their shares following Jack Ma ceding control of Ant Group.
• This follows an organizational overhaul by Ant Group to establish a line under a regulatory crackdown that came about soon after the preemption of Ant’s stock market debut.
• Hong Kong market strategist Redmond Wong weighed in on Ma relinquishing control of Ant, noting that it should be seen as a positive development.
The past few days have seen a remarkable rise in the value of shares of several Ant-linked firms following a major organizational development by Ant Group. After its founder Jack Ma gave up control of the fintech giant, the Hong Kong-listed shares of Ma’s Alibaba Group closed 8.7% higher. Other Ant-staked companies also saw their shares increase significantly. These include Longshine Technology Group, Jilin University Zhengyuan Information Technologies, and Shanghai Golden Bridge Infotech. Ant also has part ownership in Orbbec Inc and Hundsun Technologies.
The development follows an organizational overhaul by Ant Group to establish a line under a regulatory crackdown that came about soon after the preemption of Ant’s massive stock market debut two years ago. The overhaul involves Ma giving up control of the company, a decision that has been widely welcomed within the financial sector. Hong Kong market strategist Redmond Wong weighed in on Ma relinquishing control of Ant, noting that it should be seen as a positive development. Wong stated that the move shows that Ma and Ant Group are committed to cooperating with the Chinese government and its regulations.
The move is being seen as a positive sign for the future of Ant Group and its affiliated companies. Analysts expect that the group will now be able to focus on its core business of providing financial services to individuals and businesses, as well as its investments in technology and fintech. Ant Group’s share prices are also expected to remain relatively stable in the coming weeks, as investors become more confident in the company’s ability to adhere to regulations and its commitment to providing quality services.
Overall, the move by Jack Ma to step down from his role at Ant Group is being viewed as a positive step forward in the company’s development. With the regulatory concerns now addressed, the company is expected to focus on its core business and expand its reach across the globe. This could lead to an even brighter future for Ant Group and its associated companies, as well as an improved financial standing for its investors.