Xi Jinping Personally Stopped Ant Group's Historic IPO
Chinese President Xi Jinping halted Ant Group's IPO after the founder, Jack Ma, criticized Chinese officials, according to MarketsInsider.
Ant Group's IPO was expected to the largest in history, at $37 billion. Ant Group is a fintech company founded by Jack Ma, who also co-founded Chinese e-commerce giant Alibaba. China's new lending rules were causing problems for the company, and financial authorities eventually suspending the initial public offering.
On October 24, Jack Ma criticized global banking rules at a conference in Shanghai, stating that they were "unsuitable for healthy innovation." Ma quoted Xi by saying "success does not have to come from me." Ma believes China's financial issues can be alleviated through innovation. Government officials were offended by his comments and believe that they were made in bad faith to damage reputations.
Ma called the international banking regulators group an "an old people's club." Xi was supposedly enraged by Ma's comments. According to the article, Xi instructed Chinese regulators take a deeper look into Ant Group's IPO. Not long after, on November 3, the offering was suspended.
Ant Group was still able to secure over $3 trillion in orders from individual investors from its dual listings in Hong Kong and Shanghai.