Alibaba Group announced on Tuesday that it plans to split into six parts and raise money for most of them.

The development comes as China decides to ease broad restrictions and encourage private businesses.

While the Jack Ma owned tech company US-listed shares have lost about 70% of their value since the restrictions went into effect in late 2020, they gained nearly 9% in early trade on Monday.

Alibaba announced the biggest restructuring in its 24-year existence, breaking itself into six divisions: Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group, and Digital Media and Entertainment Group, per Reuters.

This update occurs as Beijing seeks to stimulate private sector development after a two-year crackdown on its flagship private firms and one day after Alibaba founder Jack Ma came back to China from overseas.

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Beijing's Crackdown on Jack Ma

China's aggressive crackdown on Jack Ma's business started in late 2020, when Ant Group, the billionaire's financial technology company, was forced to scrap its huge offering in Hong Kong and Shanghai. Before the listing rejection, Jack Ma criticized China's financial regulator, per CNBC.

Beijing then reinforced domestic regulations. In 2021, Alibaba was fined $2.6 billion for antitrust violations. Investors worried that President Xi Jinping was targeting private businesses by tightening technology industry regulations.

A WeChat post from Yungu School in Hangzhou, where Alibaba is located, claims that Alibaba founder and CEO Jack Ma recently visited the school to discuss with instructors how to best educate students in the age of artificial intelligence.

In November, Ma had already spent nearly six months in Tokyo, during which time he had made several visits to both the United States and Israel, according to The Financial Times.

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