Ma, formerly one of China's most flamboyant entrepreneurs, has largely disappeared from public view since Alibaba's fintech arm was investigated and fined by regulators for alleged monopolistic practices.
Ma will not hold any high-level title at the restructured organization, the report said, as Beijing seeks to limit his influence. Viral videos circulating on Chinese social media earlier this month showed construction workers using a blow torch to remove characters on a large "Hupan University" sign.
In a series of blows for the group, Alibaba was fined a record 18.2 billion yuan by antitrust authorities last month, and its fintech arm Ant Financial has been ordered to restructure its business after a planned listing was scuppered.
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