By Bingyan Wang
Shares of Alibaba Group Holdings were higher following news that co-founder Jack Ma is ceding control of affiliated company Ant Group Co., potentially paving the way to a resurrected IPO plan. them by fintech giants.
Alibaba’s Hong Kong-listed shares rose as much as 8.3% in early trading on Monday, extending its year-to-date gains to 27%. Shares are outperforming a 1.7% gain in the city’s broader Hang Seng Index and helping lift the city’s tech index to 3.0%. Alibaba is a shareholder of Ant.
Ant, which owns China’s most widely used digital payment platform, Alipay, has overhauled its operations amid a government crackdown that began with Beijing’s cancellation of an IPO plan of the company by the end of 2020. The new change of control was announced by Ant over the weekend, bringing the company closer to restructuring.
Alibaba added on Sunday that its equity interest in Ant remained unchanged.
Alibaba shares rose 7.6%. Shares of the unit Alibaba Health Information Technology Ltd. 8.0% higher.
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