Shares of Alibaba Group Holding Ltd (NYSE:BABA) rose more than 7% in morning trading in Hong Kong, after news broke that billionaire Jack Ma is giving up control of Ant Group.
Under the proposed plan, Ma’s 10% stake in Ant will be reduced to 6.2%, according to a Reuters report. Its related entities also have equity stakes in Ant, which together give it a majority stake in the fintech company, which will change as part of the reform, the report said.
On Monday, not only Alibaba’s share price rose, but also shares of other Ant-related entities. Shares of Longshine Technology Group Co Ltd, Jilin Zhengyuan, Shanghai Golden Bridge Infotech Co, Orbbec Inc and Hundsun Technologies also rose. experienced breakthrough in morning operations.
The opinion of the expert
Alexander Sirakov, managing partner of Aquariusx, a Shanghai-based investment consultancy, says investors will finally be able to stop guessing and assign a risk premium to the new company Ant has become, according to the Reuters report.
Earlier this week, it was reported that Ant received regulatory approval to raise around $1.5 billion in cash for its consumer lending division.