CK Hutchison cuts back on deal with Ant Group

CK Hutchison (0001) has reduced its shareholding in AlipayHK, a joint venture established with Ant Group in 2017, to 39.7 percent from 50 percent in September, local media reported yesterday.

CKH's top managers including Canning Fok Kin-ning, group co-managing director, have left the joint venture's board. That excludes Jennifer Tan Yuen-chun, chief executive of AlipayHK and former chief operating officer of Hutchison Telecommunications Hong Kong (0215).

The move came as Ant was planning to raise US$37 billion (HK$288.6 billion) by dual listing in Hong Kong and Shanghai, which was later suspended by Chinese regulators as Ant's lucrative online lending business faced tighter scrutiny.

Meanwhile, China's move to draft rules aimed at preventing monopolistic behavior by internet platforms is timely and necessary, Alibaba Group chief executive Daniel Zhang Yong said yesterday.

Speaking at the World Internet Conference, Zhang said Chinese internet companies have moved to the forefront of the global industry with the help of government policies, but regulations need to evolve.

"To ensure a more orderly and healthy development of the internet and the digital economy, relevant state departments are seeking opinions on policies and regulations for the internet platforms ... this is very timely and necessary," he said.