Alibaba Group plans to split into six units and explore fundraisings or listings for most of them, in a major revamp as Beijing vows to ease a regulatory crackdown and support its private enterprises.
plans to split into six units and explore fundraisings or listings for most of them, it said on Tuesday, in a major revamp as Beijing vows to ease a sweeping regulatory crackdown and support its private enterprises.
The revamp of the conglomerate comes a day after its founder Jack Ma returned home after a year-long stay abroad and as Beijing looks to spur private sector growth after a two-year-long regulatory crackdown on its showpiece private enterprises. Daniel Zhang will continue to serve as chairman and CEO of Alibaba Group, which will follow a holding company management model, and concurrently serve as CEO of Cloud Intelligence Group.
Zhang also said that the company would "lighten and thin" its middle and back office functions, but did not detail job cuts. “With this expectation, investors will be more positive on Alibaba. “It may reflect a new round of development for the business and reduce worries of regulatory issues.”The restructuring is among the biggest corporate moves made by a major Chinese tech company in recent years, as the industry cowered under tightening regulatory oversight, causing deals to dry up and dampening appetite among businesses to explore new areas.
China's new premier, Li Qiang, who has been at the forefront of government's effort to bolster the private sector, had recognised Ma's return to the mainland could help boost business confidence among entrepreneurs and since late last year had begun asking Ma to return, five sources with knowledge of the matter told Reuters.
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