In 2024, Ant Group announced changes to shareholder voting rights that reduced Jack Ma's voting control from 50% to 6%, meaning he was no longer the actual controller of Ant Group. The restructuring came as part of ongoing Chinese government pressure following the 2020 IPO cancellation. Ma replaced SoftBank as Alibaba's largest shareholder in early 2024 but continued to face government oversight.
compelled $984.0M
In January 2023, Ant Group announced restructuring so Jack Ma no longer controlled the company. Ma's voting rights fell from over 50% to 6.2%. Ten major shareholders began using voting rights independently, no longer acting in concert. Changes came as Ant neared completion of two-year regulatory restructuring. Chinese authorities imposed $984 million fine on Ant and units in July 2023 for allegedly breaking consumer protection and corporate governance rules.
On November 3, 2020, China's President Xi Jinping personally ordered regulators to suspend Ant Group's initial public offering, which was scheduled for November 5. The $37B deal would have been the world's largest-ever IPO, valuing Ant at $314 billion. The suspension came days after Jack Ma's October 24 speech criticizing financial regulators. Regulators summoned Ma and Ant executives, citing concerns about microlending practices. The decision was widely viewed as political retaliation.
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Jack Ma made no public appearances from November 2020 to January 2021 following regulatory criticism. His net worth fell from $61.2 billion peak in 2020 to approximately $30 billion by 2023. Financial Times reported Ma lived in Tokyo for nearly six months after Beijing's crackdown. He became University of Tokyo visiting professor (May 2023-October 2024) focusing on sustainable agriculture, maintaining low profile.
From November 2020 to late January 2021, Jack Ma was not seen in public following the cancellation of Ant Group's IPO and his criticism of Chinese regulators. His disappearance sparked international speculation about whether he had been detained, placed under house arrest, or coerced into silence. Ma stepped down from Alibaba's board on October 1, 2020, before the disappearance. He later moved to Tokyo in 2022, spending significant time outside China.
At October 24, 2020 Bund Financial Summit, Jack Ma publicly criticized Chinese regulators, stating banks have a 'pawnshop mentality' and calling regulators an 'old people's club' that stifles innovation. The criticism reached Xi Jinping who was furious and personally ordered suspension of Ant Group's $37 billion IPO days later. Ma was summoned by regulators on November 2. This speech triggered massive regulatory crackdown on Alibaba and Ant Group.
At an October 24, 2020 financial forum in Shanghai, Jack Ma publicly criticized China's regulatory system, saying banks had a 'pawn shop mentality' and that 'we cannot regulate the future with yesterday's means.' He stated 'There's no systemic financial risks in China because there's no financial systems in China. The risks are a lack of systems.' Chinese officials were reportedly 'furious' about the speech, which precipitated government crackdown on Ant Group and Alibaba.
In October 2020, Jack Ma delivered a speech criticizing Beijing's approach to financial regulation. This triggered one of the most severe regulatory crackdowns in Chinese corporate history: the Ant Group IPO (valued at $315B - would have been largest ever) was blocked days before launch, Alibaba lost ~$620B in market cap, and Ant Group's valuation collapsed from $315B to $78.5B. Ma ceded control of his companies and effectively disappeared from public life for months.
In April 2019, Jack Ma stated 'I personally think that being able to work 996 is a huge blessing' in remarks posted on Alibaba's WeChat. The 996 culture (9am-9pm, six days a week) is illegal under Chinese labor law limiting work to 40 hours weekly. Ma's comments came after People's Daily argued 996 violates labor law. The Supreme People's Court deemed 996 illegal on August 27, 2021. Ma later tempered comments, saying companies forcing such practices are 'foolish.'
In November 2018, People's Daily identified Jack Ma as member of Chinese Communist Party (CCP), surprising many observers. Ma famously told employees they should be 'in love with the government [but] don't marry them,' and praised China's one-party system for its stability at World Internet Conference in Wuzhen. The revelation clarified his political alignment despite his entrepreneur image.