Alibaba Group detailed plans to split into six independent units with the stated aim of making its operations more agile, though an analyst noted the move also potentially indicated an attempt to appease China’s government following moves to reform the online sector.

In a statement, Alibaba noted the new organisational and governance structure will boost its decision making and speed of response to changing market conditions, moves it expects to boost innovation.

But Richard Windsor, founder of research blog Radio Free Mobile, argued the reorganisation had more to do with giving the government better visibility and control over the wide range of Alibaba’s activities.

He asserted the upside for the government is being able to monitor and influence each of the six units indvidually.

Windsor believes the restructuring puts Alibaba in a good position to “enjoy a substantial recovery in value”.

The new groups are a cloud intelligence unit headed by CEO Daniel Zhang; Taobao Tmall Business, comprising its main e-commerce operations; local services; global digital business; Cainiao Smart Logistics; and digital media and entertainment.

Each group will have its own CEO and board, and be owned by Alibaba, which will be turned into a holding company and continue to be listed in Hong Kong and New York.

Alibaba noted each unit except Taobao Tmall Business will be able to raise outside capital and potentially seek an IPO.

The company was an early target of a Chinese government crackdown, with stock market regulators suspending a planned dual listing on the Shanghai and Hong Kong exchanges by its financial arm Ant Group in 2020, a move widely seen as retaliation after Alibaba founder Jack Ma publicly criticised a financial regulator.

Regulators later ordered a restructure of Ant Group into a financial holding company.

Others hit in China’s clamp down included Tencent, which faced calls to combine various finanical services into a separate holding company subject to traditional banking regulation.