Jack Ma slipped from China’s richest person to number four, now leaving the responsibility of Ant Group

Jack Ma Is Giving Up His Power: Chinese billionaire Jack Ma is paying a heavy price for the pressures of the Chinese government. Ma plans to give up control of his fintech company Ant Group. According to a report in the Wall Street Journal, Ma will transfer some of his voting shares to senior Ant executives, including the CEO. His move is being seen as his attempt to move away from the Alibaba Group based on the character of his Arabian Nights fairy tales. Once the richest person in China, now this country has come down to the rank of the fourth richest person with a net worth of $ 36.6 billion. Jack Ma has had to pay a lot to get out of China’s government control.

Jack Ma is currently on a tour of Europe

Jack Ma is on a week-long tour in Europe after nearly two years missing from the public eye. His visit is indicating that the Chinese government is reducing the pressure on this entrepreneur. The reason behind this can be traced back to the billionaire Ma’s retreat from his business empire. It was because of this business empire that he was knocking in the eyes of the Chinese government. According to a Bloomberg report, these days the 57-year-old co-founder of Alibaba Group Holding Limited was seen in a restaurant in Austria. After this he visited a university in the Netherlands to learn about sustainable agriculture, and after that his boat was seen on the Spanish island of Mallorca. However, this is not Ma’s first visit outside China.

Alibaba shares fell four percent

According to the Wall Street Journal, Alibaba’s Hong Kong-listed shares were down 4 percent as of 9:49 a.m. Friday, July 29, only after Ant informed Chinese regulators of Ma’s intention to give up control. However, Ma has no title in ant management and giving up control of the company will cause little disruption to daily operations, as he has not been deeply involved in it for years. Jack Ma’s decision will now pave the way for fulfilling Chinese President Xi Jinping’s vision of achieving “shared prosperity”. It is worth noting that Ma’s move will fit the resolve of Chinese interest watchdogs to curb the “reckless” expansion of technology firms.

Ant Group left to avoid Chinese government

Significantly, in recent years, the Chinese Communist Party’s developing attitude towards the private sector in global markets is being closely monitored. Some observers have called China’s vast Internet sector un-investable. Before Ma succumbs to the wrath of Chinese regulators. He is distancing himself from the twin empires of e-commerce giant Alibaba and Ant. It is worth noting that for this reason, Ma left the post of CEO of Alibaba in 2013 and then chairman in 2019. In early 2014, he expressed his intention to reduce his stake in Ant to 8.8 per cent and donate 611 million shares to charity.

In trouble with the criticism of the Communist Party

In the year 2020, Jack Ma criticized Communist Party officials for regulating his fintech giant Ant Group Company. Then the Chinese government had advised this billionaire not to leave the country. As recently as two months back in May, this business tycoon had to pay a heavy price due to scared investors. Then Alibaba’s shares had to suffer a loss of $ 26 billion. Then the Chinese local media ran the news of Chinese officials banning a person named Ma. This made investors feel that Ma was caught in the trap of the Chinese government. However, later the local media clarified that the report was referring to some other mother. Jack Ma had to pay a heavy price to get out of the clutches of the Chinese government.

Ant the eyes of the Chinese government

In the year 2020, Chinese regulators ruined the much-awaited first public offer of Jack’s company Ant. When a company issues its common stock or shares to the public for the first time, it is called IPO i.e. first public offer. After this, the company changed the operations of the company to comply with the strict rules of the Chinese government. The company discussed regularly with China’s central bank how to improve operations. In its early years, Ant’s success in services such as digital payments and money market deposits threatened the dominance of China-backed banks. Justin Tang, head of Asian research at United First Partners, said: “If Ma hands over control of Ant to another, the risk of the Chinese government’s sword hanging around Ant Company’s neck will be reduced.

Ma also said that you will be away from Ant

According to experts in the matter, Ant had given a verbal signal to Chinese regulators that Ma wanted to give up his control over the company. Significantly, Ant had informed the Chinese authorities and the central bank years ago of Ma’s plan to leave it. One proposal under consideration includes the transfer of Ma’s shares to other Ant executives so that a committee can oversee the company. intends to reduce the interest and thereafter limit it to one per cent. which is not more than 8.8 percent. Ma currently holds 50.52 percent of the voting rights of Ant. However, representatives of Ant, Alibaba and Ma Foundation and both China’s central bank did not respond on the matter.

How Alibaba came to be

Jack Ma’s life is an inspiration to the world. Being an English teacher, he did a job in which he had no special knowledge. Even after not knowing the computer completely, he laid the foundation of online business. He started Alibaba’s online business in his apartment and in 2014 collected $ 25 billion from public stake. In the year 2018 Forbes list, Jack Ma was named the richest person in China with a wealth of $34.6 billion. In the year 2019, Ma retired as the chairman of Alibaba Group. After this, on 18 May 2020, the founder of this group was also announced to resign from the SoftBank board. Then SoftBank Group Corp had said that he wanted to dedicate his life to social work.

Disappeared after differences with the Chinese government

Alibaba founder Jack Ma has been a target of the Chinese government since the year 2020. After this, he was not seen in public for a long time except on two-four occasions. Because of this, speculations were being made about his disappearance. There were also reports of his arrest in May 2022 this year amid the ongoing war of words with the Chinese government. Because of this his company had to suffer a lot. Due to fear, investors started selling shares of Alibaba and the MCap of Alibaba Company went down by $ 28 billion i.e. Rs 2.06 lakh crore.

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