Jack Ma’s $37Bn stock, Ant Group’s IPO halt By China
By: Sneha Chaudhary
- China’s richest man is going to unveil the world’s biggest IPO.
- Ma summoned by the Top Financial owners from Beijing
- Ant’s listing is declined by the Shanghai Stock Exchange
The world’s biggest IPO is going to be unveiled by China’s richest man. He has been busy preparing for the largest four-day Double Eleven shopping extravaganza for Alibaba Group Holding Ltd. At a high profile financial forum in Shangai, two weeks ago. Ma somehow took the time to focus on China’s banking system, tossing himself right into the eye of the storm.
Jack Ma said, in a speech “systemic risk was not the problem in China, apart from labelling the global banking Basel Accords as “old people’s Club.” Instead, the greatest challenge for China is that it “lacks a financial ecosystem.” Chinese banks are like “pawn stores,” where the hard currencies are collateral and guarantees.
According to the report, others have decided to go so big that they can’t lose. Meanwhile, “Chinese would like to say, if you borrow 100,000 yuan from the bank, you’re a bit terrified; if you borrow a million yuan, you and the bank are a little nervous; but if you borrow one billion yuan from the bank, you’re not at all frightened, the bank will be,” said Jack Ma.
The consequences came this week. On Monday, by the financial owners from Beijing, Jack Ma was summoned and dressed down. Also released draft guidelines on online Microlending, laid down tighter collateral conditions and operating rules for some consumer credit undertaking of Ant Group Co. But on Tuesday night, the big shocker has arrived. On its Starboard Ant’s listing got suspended by the Shanghai Stock Exchange, on Monday citing a meeting on subsequent regulatory changes. In a filing, Ant then said it would also suspend its Honk Kong IPO. On Thursday, the Fintech Giant was set to begin trading. On Tuesday in New York, the news sparked a slide in Alibaba’s share thus pulling down the U.S. listed stocks of other Chinese firms.
Ant Group Co. is a matchmaker in the fast-growing consumer lending market as banks lend and set away cash in case any loans go sour. Cities commercial banks complained to local media about the Fintech Giants are earning much more than lenders.