Ant Group CEO leaves after failed IPO prompts revamp

BEIJING: China’s Ant Group Chief Executive Officer Simon Hu has unexpectedly resigned amid a regulatory-driven overhaul of the financial technology giant’s business, the first top management exit since a scuppered $37 billion initial public offering. Hu, who was named chief executive of the Alibaba Group Holding affiliate in 2019, will be replaced by company veteran and Executive Chairman Eric Jing, Ant said in a statement on Friday. Hu’s exit from the company comes as Ant is working on plans to shift to a financial holding company structure following intense regulatory pressure to subject it to rules and capital requirements similar to those for banks. That pressure abruptly scuttled Ant’s IPO last year, which would have been the world’s biggest. Hu resigned for personal reasons, Ant said in a statement, without elaborating. “Following the board’s thorough discussions, we have decided to respect Simon’s personal request and support him fully in his new mission’’, Jing said in an internal memo, an excerpt of which was seen by Reuters. Jing will continue in his current role as chairman, he said. Hu’s departure is the first major management change since the IPO was scrapped. He was one of the key executives responsible for managing the company’s mega dual-listing in Hong Kong and Shanghai. Ma’s business empire has been at the centre of a crackdown following an October 24 speech in which he blasted China’s regulatory system. Regulators have since been tightening scrutiny of the country’s technology sector, with Alibaba taking much of the heat. The regulator launched an official anti-trust probe into Alibaba in December. Ma, who is not known for shying away from the limelight, disappeared from the public eye for about three months, prompting frenzied speculation about his whereabouts. He re-emerged in January in a 50-second video appearance. — Reuters