- Ant Group is one of the largest conglomerates in China, has a business in Technology, Financial Services, Payment processor sector with a total net worth of $ 313 Bn.
- Ant group is formerly known as Ant Financials and Alipay was all set for a dual listing in Hong Kong and Shanghai stock exchange worth about $34.4 bn.
- Indeed, it got suspended after a last-minute intervention by the Chinese authorities.
- Ant was about to sell its 11% stake across both the markets, Which was anticipated to be the world's largest Initial Public Offering till date (beating Saudi Aramco's $29.4 bn IPO) was abeyance by the Chinese government.
- Shanghai stock exchange said that Mr. Ma has been called in for "supervisory interviews". This clearly indicated that the offering no longer met the listing condition requirements.
- The company later said that the listing was suspended as there had been a “significant change” in the regulations. China also published new norms for online lenders and micro-lending by apps such as Alipay.
- But the truth behind this takedown is suspected to be far from what is mentioned earlier.
- For quite a long time, Chinese government authorities have been worried about Ma's influence over how Chinese people shop, spends, and saves and how he was unofficially the face of China. Chinese govt felt less ascendancy on its people compared to Jack Ma.
- Moreover, they were concerned about his superstar status and influence over the people of China and worldwide.
- Mr. Ma's comment at the Fintech conference questioning the Chinese authorities added fuel to their concern.
- He compared traditional banks to "pawn shops" encouraging the digital banking system instead.
- He further added that lending decisions by the banks should be taken on the basis of data rather than the traditional methods of collateral.
- In China, most of the big companies have a key person from govt authority. Technically there is no 100% privatization in China.
- Looks like even if you are a successful billionaire but if you are working in China you will have to face the government.
I hope it was helpful
-Articulated By Divya Pansari
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