JACK MA’S ANT GROUP LATEST NEWS

WHY CHINA WANT TO KILL ANT GROUP IPO

The Ant group is a Fintech company, constrained by China’s most extravagant man Jack Ma of the Alibaba notoriety. He wanted to take the Ant group public, and raise as much as 37 billion dollars simultaneously. This would have been the biggest IPO, or first sale of stock on the planet — greater than the posting of Saudi Aramco.

Regardless, the Communist Party has dropped the ax on Ant group. The Chinese government has suspended the public posting of this company, marking a major blow for Jack Ma — China’s most lauded entrepreneur. In addition, a person from the Communist Party. According to different cases, this was done considering the way that Ma was extending than the Chinese state itself.

The Ant group IPO was killed by Beijing at the eleventh hour, which happened just a short time before the company’s stock should start trading Hong Kong and Shanghai.

Apparently, the orders came straight from the top, which might even mean President Xi Jinping himself. China said it wants to maintain the stability of the capital markets.

“Here, what I can let you know is that the decision of suspension is relevant stock trade division satisfying its responsibility of self guideline. The decision (of suspension of the IPO) is made by relevant trade institutes based on laws to more readily safeguard capital market stability and ensure investor rights and interests”, Chinese foreign ministry spokesman Wang Wenbin said.

Anyplace on the planet, dropping an IPO worth 37 billion dollars would shock the investors, and welcome more noteworthy scrutiny. On Monday, Jack Ma was issued a summoned to an uncommon joint gathering. Apparently, he met with the People’s Bank of China and three other top budgetary regulators. They revealed to him that the Ant group would confront increased scrutiny starting now and into the foreseeable future.

Why?

One, the capability of the Ant group itself. Aside from encouraging computerized payments, the Ant group is also a miniature bank. After their underlying success, the company wandered into abundance management and insurance. Ant group’s payments item Alipay has more than one billion users.

The company issues around one-10th of the entirety of China’s non-contract consumer loans. Listing the Ant group on the exchanges would have prompted bonus gains for investment banks. They were required to procure 300 million dollars in fees.

It is supported by one of the most appreciated entrepreneurs on the planet who seems to have fallen on some unacceptable side of his own party. Jack Ma may have annoyed the communist leadership with a statement. Last month, he had condemned China’s money related regulations. Calling them “obsolete”, Jack Ma said they were stifling development in the sector.

As per one case, the Ant group was being seen as China’s answer to America’s JP Morgan — A company that could disrupt the monetary sector. As indicated by another case, the huge five state-possessed banks have a hold on 33% of the assets inside the Chinese banking sector. China doesn’t seem to be happy to relinquish its control on the budgetary sector just yet. In the background, Chinese regulators have been steadily fixing their command over companies like the Ant group. What’s more, by murdering the Ant IPO — they have set a message to Jack Ma. Allegedly, the Ant group now needs to consent to another set regulations.