Alibaba (NYSE:BABA) stock is gaining on Monday as investors react to the news that Jack Ma is giving up control of Ant Group.
Ant Group, an affiliate of Alibaba, is a leading financial technology company in China. Ant and Alibaba were both founded by Jack Ma. However, a recent filing says that “no shareholder, alone or with other parties,” will have control of Ant. This follows an ownership restructuring.
This is important to note for BABA investors as Ma’s ownership of Ant Group has caused problems in the past. That includes Chinese regulators stepping in the way of an initial public offering (IPO) two years ago.
It’s also worth mentioning that Ma went out of sight for over two months around the same time following his critical comments toward Chinese regulators. This came at a time when China was attempting to keep Ma, as well as its tech sector, from expanding too far.
What’s This Mean for Ant Group?
Redmond Wong, a China market strategist at Saxo Markets, said the following to Reuters about Ma giving up control of Ant Group.
“It should have removed some of the authorities’ concerns about the group as the change was likely a negotiated outcome with the authorities […] And investor sentiment towards the China internet sector is likely to improve further.”
BABA stock is up 2.4% as of Monday morning.
Investors looking for more recent stock market news are in the right place!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Monday! That includes everything happening with shares of Tesla (NASDAQ:TSLA) stock, this morning’s biggest pre-market stock movers and more. You can read all that news at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.