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There is a great battle in China … Due to the tension between the richest person in the country, the founder of the trading giant Alibaba, the president of Jack Ma, Xi Jinping, the trading of Ma’s company has been halted. According to the allegations, 56-year-old Jack Ma openly criticized the administration in a meeting with top bureaucrats. “There is no systemic risk in the Chinese financial system. “There is no Chinese finance system” expressions used. But in the same meeting he also said that banks in China have a “loan shark mentality”. What happened happened after this …
Chinese financial technology company A surprising claim was made by the American newspaper The Wall Street Journal behind the scenes of the shocking decision to stop Ant Group IPOs on the Shanghai and Hong Kong stock exchanges.
According to the news, which is based on well-informed Chinese officials on the matter, China’s richest person with a fortune of $ 58.8 billion and Alibaba and Ant Group boss Jack Ma openly criticized the authorities in his speech. of 24 October. Jinping intervened personally and stopped Ant Group’s IPO. If the IPO were allowed, $ 34 billion would have been generated from the listing of Ma’s company. That would make the company the institution that signed the largest public offering in history.
HE LISTED HIS CRITICISM AGAINST THE VICE PRESIDENT VICE
Chinese vice president Wang Qishan, president of the Chinese central bank Yi Gang and senior executives of some public banks were also present at the forum where the speech was delivered.
According to the WSJ, 56-year-old Ma’s speech was the last straw in years of tension between Ma and state officials, as it angered government officials and regulators.
According to the report, state officials have been disturbed by Ma’s growing influence and the rapid growth of his own digital payment company, reaching a huge volume.
A pickup from Ma’s controversial speech at the Shanghai forum / Photo: Reuters
ALSO TARGETED BANKS
In his 21-minute speech, Ma criticized the Beijing administration’s steps to contain financial risks, saying, “There is no systemic risk in the Chinese financial system. “There is no Chinese finance system” expressions used.
“Regulators only focus on risk and ignore development,” said Ma, who targets regulators directly.
But, who also targeted large Chinese banks with the words “they have a loan shark mentality,” said the banks have hurt many entrepreneurs.
The speech in question went viral on social media in China and Ma was admired by many for her courage, but angered senior officials.
Meeting with Jinping’s instructions on Oct.31, financial authorities held a meeting with Ma and Ant Group officials on Nov.2.
SPEECH THAT STOPS THE PUBLIC
But he quoted President Jinping’s phrase “Success doesn’t have to come from me” and said he wanted to help solve China’s financial problems through innovation.
But he publicly criticized the government, arguing that increasingly stringent financial regulations are hindering technological development.
President Jinping, who read the news of the speech, was angry and ordered an investigation into Ant Group’s public offering. The decision to suspend the public offering was announced on November 3.
The WSJ’s questions on the subject were not answered by Ant Grup, Jack Ma and Chinese government officials.
IT USES 70 PER CENT OF THE POPULATION
According to Chinese officials who spoke to the WSJ, Chinese regulators have long wanted Ant to be contained and controlled.
Alipay, the digital payment application within the Ant Group and used by 70% of the Chinese population, has disrupted the Chinese financial system.
Free from the rigid regulations and capital rules to which traditional banks are subject, Alipay has reached 20 million small businesses and 500 million individuals.
Alibaba’s market value exceeded $ 800 billion this year. The company’s value has quadrupled over the past six years.
ANT HAS STRONG INVESTORS
According to the WSJ, Chinese financial regulators’ demands for restraint against Ant Group have not been met due to Ma’s strong ties among top Chinese officials.
Ant’s investors include the Chinese National Pension Fund, the China Development Bank and China International Capital Corporation, the country’s largest investment bank, and the Boyu Capital private investment fund, of which Alvin Jiang is also a partner. grandson of former Chinese president Jiang Zemin. has.
“WHO MADE THE SPEECH”
Former Chinese Bureau Chief of the International Monetary Fund (IMF) and Cornell University professor. “The relationship between Ant and the government is complex,” says Eswar Prasad. Government institutions no longer see Ant as too large and effective to contain. “Ma’s speech in October prompted the government to act,” he said.
While China’s Ant Group shares received approximately $ 3 trillion in demand from individual investors prior to the public offering, the size of the public offering was set at $ 34.5 billion.
Ma, a former English teacher, founded the e-commerce company Alibaba in his office in 1999 and the company went public on the New York Stock Exchange in 2014.
Jack Ma announced his retirement with a meeting attended by 40,000 Alibaba and Ant employees last year, performed and sang.
Ant Grup Headquarters, Hangzhou / Photo: Reuters
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