What’s new: The head of Alibaba Group Holding Ltd.-owned Luohan Academy has denied rumors the think tank is closing but said some of its operations will be handed over to its parent as part of a reorganization.
Chen Long told an online group Sunday that the research institute will remain operational, Caixin has learned. But Alibaba will take over responsibilities such as research on environment, society and governance. Operations including research on the digital economy will be handled by a newly established non-governmental organization named “Luohan digital economy research institute,” he said.
The reorganization is “in line with the founding purpose and ongoing efforts” of Luohan Academy, said Chen, who also served as chief strategy officer of Ant Financial, now called Ant Group, operator of mobile payment platform Alipay.
The background: Chen’s comments came after media outlets including South China Morning Post reported that Alibaba planned to close Luohan Academy, citing people familiar with the matter. The institute was founded in 2018 to “serve society at large, addressing the most important global challenges” such as those related to digital technology.
Alibaba is in the midst of a sweeping business overhaul that is breaking up the e-commerce giant into six units with independent decision-making on financing and share sales.
Related: In Depth: Alibaba Has Hurdles to Overcome Before Its Drastic Restructuring Pays Off
Contact reporter Wang Xintong (xintongwang@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
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