They did not take kindly to this. Ant IPO debacle is a diminishing point. And apparently, the existing policy issues have been around for a long time and many disagreements have been going on for the past decade.
It wasn't until this really smart event that the entire balance was put on hold. Ants is China's largest company, fintech, founded in 2004 as a payment service to facilitate transactions in Alibaba.
"The company has grown its business into asset management, lending, and insurance. For the year to June 2020, it has managed to process payments worth $ 17 trillion. And at one time it had the largest stock market in the world"
There have been many complaints from government lenders over the past few years about how ants get into their turf, especially in lending and asset management.
And the banks were caught in a very strict set of different rules and the ant was able to break these strict rules by playing the role of fintech disturber.
And add a little lending. And I say microlending is just the name of a small, large, large, multi-faceted loan that goes to consumers on many different Alibaba platforms.
That posed a serious risk because Alibaba financed only about 2% of those loans, with some of those loans secured by state banks.
They took great risks. Just the day before the ant's IPO was suspended, regulators have issued stricter rules for online microlenders that will require ants to provide at least 30% of their loans to banks and other financial institutions.
That night, Jack Ma was summoned by management to a meeting. What we learned was that even though they were not talking about the IPO details, the message was clear, that the days of Ant's free business thinking would be over, and things would change.
That was probably the first impression that things would go according to plan. But the writing on the wall was already out there for months on end.
There were a number of laws that had been in place since September that curtailed Ant's lending business.
After Ant's IPO was suspended, the company was instructed to restructure its business, making it a financial management company with the same rules as the bank.
Authorities also launched an anti-independence investigation into Alibaba. In addition, Jack Ma's growing communications state is also under investigation.
He is the owner of the South China Morning Post in Hong Kong. Owner of at least 30% of the Weibo social network,
similar to China's Twitter. He also has another means of communication, Yicai, which is the largest online media company in China.
The directors are said to be heavily involved in influencing Jack Ma and Alibaba in those media business management in has Chinese community. Some would say that it is the Chinese government that wants to have the final say in what the public gets.
Since the collapse of Ant, Ma's IPO, the face of China's new economy and the show, which is always in the middle, disappeared. Jack, are you there? Jack?
It doesn't look like anyone is inside. He may not be visible, but he is not lost. He has not been kidnapped. He was not taken. Like many businessmen in China, Ma has been on the move, equating certain conflicting needs from Beijing with foreign investors who are eager to see growth. Jack Ma has been calling himself.
His product for many years or he tried to create this image where he was a rebel, where he rebelled against the system and was a troublemaker fighting for little boys.
In love with the government, but do not marry them. I mean, this ... She is extremely savvy, always begging for a good,
trying to convince the government why his company and the services they provide are ready to create jobs in China and China's image.
It was not until the beginning of the year, 2021, that Jack Ma reappeared.
He was talking about giving to the people, and the way he delivered his speech was very modest and very humble compared to his talk in October.
He was doing something the government wanted someone worth $ 54 billion to do. And that is talking about the eradication of poverty and building and investing in rural China.
These are messages that appeal to the Communist Party of China. You know, 10 years ago, I mean, it was very different, or 15 years ago, a very different government back then.
You have more laissez-faire towards technology.
You also have inaccurate rules or regulations that often overlap, sometimes in spaces. And Jack, I think they worked hard some of them. Compare that to today, we see very little tolerance for control problems.
The Chinese government has upheld its game. You can no longer just hit the government the way it did. So maybe Jack just didn’t see that the game had changed.
Just five months after Ant's sudden IPO collapsed, regulators beat Alibaba fines on one-off conduct. Now the ant is still under construction.
Is the Chinese government trying to limit Jack Ma? They don't want to limit world champions, OK? But maybe they want to blow Jack Ma's public profile down a bit. So I don’t think Alibaba will change completely.
Its content will remain e-commerce. But I think the ant, yes, is very different. What can an ant do without this profitable and credible data business?
That is a big question. The Chinese government has also launched an investigation into allegations of self-indulgence in bringing food to Behemoth Meituan.
Another 32 technology firms such as Tencent owner and TikTok owner Bytedance have been instructed to address anti-competitive behavior.
I think regulatory uncertainty will lag behind almost all major technical issues for the foreseeable future in China. From a government perspective, I mean, it is not in their interest to see technology companies become smaller and weaker.
It's just a different approach than the government wants these companies to move forward. The trust prevention policy will provide for small companies opportunities and room for growth, which is important.
The trend in which governments try to get into technology companies and eliminate independent practices is global.
I think in China the difference is that technology companies do not have the power to fight back.
When the government put pressure on them, it was strange to see Alibaba and them thank the government. And that’s something.
I think Google or Facebook isn’t doing in America right now. At the end of the day, the Chinese government has one last word, and it bends or bends.
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