aljazeera.com
Economy|Financial Markets
Chinese President Xi personally halted $37bn Ant IPO: Report
Ant Group’s $37bn IPO was put on ice shortly after its billionaire co-founder Jack Ma made a speech at odds with the Chinese Communist Party’s handling of the economy.
Chinese President Xi Jinping personally called for Ant Group's $37bn IPO to be halted, a report by the Wall Street Journal claims [File: Noel Celis/AFP via Getty Images]
12 Nov 2020
China’s President Xi Jinping personally decided to pull the plug on Ant Group’s $37bn initial public offering, the Wall Street Journal reported on Thursday, citing Chinese officials with the knowledge of the matter.
The decision to stop what would have been the world’s largest-ever IPO came days after the financial-tech giant’s billionaire founder Jack Ma launched a public attack on the country’s financial watchdogs and banks.
President Xi ordered Chinese regulators to investigate and effectively shut down Ant’s stock market flotation, the report said.
Ant Group did not immediately respond to Reuters request for comment. The Information Office of the State Council, China’s cabinet, could not be reached immediately for comment.
Ma had told a summit in Shanghai on October 24 that the regulatory system was stifling innovation and must be reformed to fuel growth. Earlier this month, Reuters reported the speech set off a chain of events that torpedoed the listing of Ant.
Soon after Ma’s scathing speech, state regulators started compiling reports including one on how Ant had used digital financial products like Huabei, a virtual credit card service, to encourage poor and young people to build up debt.
The general office of the State Council compiled a report on public sentiment about Ma’s speech and submitted it to senior leaders including President Xi, Reuters had reported.
SOURCE: REUTERS
RELATED
After halting Ant’s big IPO, China reportedly wants to go further
Days before the world’s biggest-ever IPO, Beijing ordered a halt to financial technology giant Ant Group’s share sale.
4 Nov 2020
Xi plays down concerns that China’s economy is turning inward
Chinese President Xi sought to ease concerns that China’s new ‘dual circulation’ strategy would make it more insular.
4 Nov 2020
Ant march halted: What Ma’s frozen IPO says about China business
Ant saw its $35bn IPO suspended after its co-founder seemed to criticise the Chinese government’s economic road map.
5 Nov 2020
US removes group condemned by China from ‘terror’ list
The faction is regularly blamed by China to justify its harsh crackdown in the Muslim-majority Xinjiang region.
7 Nov 2020
MORE FROM ECONOMY
US stocks rise to all-time high lifted by solid corporate results
US Fed bans officials from buying stocks after ethics scandal
Winter is coming? Oil falls from 3-year peak on warmer forecast
Red hot: Houston firefighters pension fund goes crypto
MOST READ
Actor Alec Baldwin shoots filmer dead with prop gun on set
‘Yes’: Biden says US would defend Taiwan against China
Barbados elects first-ever president, replacing British monarchy
Haiti gang leader threatens to kill American missionary hostages
Follow Al Jazeera English:
© 2021 Al Jazeera Media Network