SA: Alibaba stock up 8% in Hong Kong as Jack Ma gives up control of sister firm Ant Group

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SEEKING ALPHA reports:

Alibaba (NYSE:BABA) rose some 8% Monday in Hong Kong after founder Jack Ma ceded control of sister company Ant Group, whose planned 2020 IPO fell apart when Ma’s criticism of Chinese regulators got both companies in hot water.

BABA rose as much as 8.3% to 110 Hong Kong dollars ($14.09) before pulling back to 109.6 Hong Kong dollars ($14.04) as of about 11:30 p.m. ET Sunday on news of Ant’s ownership restructuring.

BABA’s U.S. shares, which are each worth eight Hong Kong ones, closed Friday in New York at $107.40. The Hong Kong rally implies Alibaba’s U.S. shares were worth about $112.32 as of around 11:30 p.m. ET Sunday.

Alibaba (BABA) rose following word that Ma − a Chinese billionaire who founded both BABA and Ant − had agreed to a deal that eliminated his effective majority control of Ant Group, a massive Chinese fintech. Alibaba (BABA) owns 33% of Ant.

Ant announced over the weekend that Ma would no longer control 34% of two holding companies that had collectively owned 53.46% of the company…

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