Is this something to worry about now for the Chinese Tech Giant?
As Alibaba and Ant Group face pressure from the Chinese government, the shares have also been on the verge of tumbling down. The said new regulations are directly targeting Jack Ma’s businesses.
Alibaba and Ant Group’s Challenging Points
According to Chinese regulators on Sunday, they had ordered Ant Group to alter their business by going back as an online payments platform. The fintech firm was told it needs to “rectify” it’s
Insurance, wealth management, and credit businesses. This is based on the statement from the People’s Bank of China.
The statement was released less than 2 months ago after the lawmakers blocked the company’s public offerings of $34.5 billion. This was right after Jack Ma had publicly announced and claimed that the Government is mainly focusing on controlling risk at the expense of innovation that was mandatory to build a healthy financial system.
Alibaba Group shares dropped almost 8% on Monday, after tumbling just over 8.1% on Thursday. According to the China’s State Administration for Market Regulation said Thursday, as they have been probing the company for alleged monopolistic practices. The e-commerce site is also accused of forcing merchants to sell only on its website, effectively barricading their rivals like JD.com.
Aside from Jack Ma’s FinTech company dropping down, stocks of other Chinese tech heavyweights also fell on Monday. Such as the shares of Tencent, which is chaired by billionaire Ma Huateng which dropped 6.6% Monday. Lastly, the JD.com, an e-commerce platform, also dropped 2.1%, while food delivery giant Meituan decreased by 6.9%.
After 13 years of being a SoftBank Board Member, Alibaba’s Jack Ma has finally resigned from his throne. Jack Ma has been recognized as one of the richest billionaires in this era. His rags to riches story made him the second richest person in China with $25 billion net worth.
Ma is one of the top allies of SoftBank CEO Masayoshi San- a major investor way back in 2000. Despite having a strong allegiance, Jack Ma stepped down from his position to pursue his lifelong philanthropy. He even quoted that, “I can never be as rich, but one thing I can do better is to retire earlier. I think someday, and soon, I’ll go back to teaching. This is something I think I can do much better than being CEO of Alibaba,” After also resigning from his position in Alibaba.