Chinese fintech giant Ant Group receives approval for no-controller status, ending Jack Ma's reign before pursuing an IPO

China's central bank has agreed that Ant Group's mobile payments app Alipay does not have a controller, a crucial step in the fintech giant's overhaul deemed necessary eagerly awaited IPO back on track.

The billionaire's voting share will now be divided between Hangzhou Junhan Equity Investment – owned by Ma and four other people with 31.04 percent of the voting rights – and Hangzhou Junao Equity, another company owned by five other people with 22.42 percent of the voting rights Voting rights, divided. Companies' voting shares correspond to their ownership shares.

The People's Bank of China announced on its website on Saturday the decision regarding Alipay.com Co, one of Ant's largest companies in China. Ant is the fintech subsidiary of Alibaba Group Holdingwhich owns the South China Morning Post.

An Ant representative said that “the corporate governance optimization announced on January 7, 2023 has been completed and will have no impact on the company’s daily operations.”

Jack Ma praises rival PDD in a rare memo urging Alibaba employees to make changes

If it announced the change in JanuaryAnt said the new shareholder structure will be “more transparent and diversified… and will facilitate the company's continued development.”

“It is definitely a clear signal that the government has eased restrictions on China's major technology platforms,” Dai Ming, fund manager at Huichen Asset Management in Shanghai, said after the announcement in January. “We can also say that it is a step forward for Ant to resume its listing.”

Wang Pengbo, senior financial analyst at consultancy BoTong Analysys, also said at the time that the new structure was “good for Ant's long-term development.”

“Although a listing is very unlikely in the immediate future… [the change] paves the way for a future IPO,” Wang added.

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Alibaba names co-founder Joe Tsai as chairman, surprisingly shaken when Daniel Zhang resigns

Alibaba names co-founder Joe Tsai as chairman, surprisingly shaken when Daniel Zhang resigns

Hangzhou-based Ant has made several restructuring moves since 2021 after its planned dual listing in Shanghai and Hong Kong was canceled at the last minute late last year.

In its January announcement, the company said it would hire a fifth independent director, who would make up more than half of the nine-member board. To further detach yourself from the E-commerce As the giant that gave birth to the company exited, certain executives left the Alibaba Partnership, a group of the company's most powerful executives. These included Ant Chairman and CEO Eric Jing Xiandong and former CEO Simon Hu Xiaoming.

The mobile payments industry will face stricter regulations in the new year. The State Council published rules for non-bank payment institutions earlier this month, with stricter licensing requirements coming into effect in May.