According to a report published by the Wall Street Journal reported on Thursday about the Chinese tech giant Ant Group's record $37billion initial public offering, the decision to prevent the floating was personally taken by China's President Xi Jinping.
The public listing of the company would have been the largest ever in the world. The decision of the Chinese regulators to ask the company executives to stop the IPO was announced a few days after a public attack on the country's financial watchdogs and banks was launched by the fintech giant's billionaire founder Jack Ma.
Chinese regulators were personally ordered by President Xi to probe the activities of the company and to effectively shut down Ant's stock market flotation, said the news report citing Chinese officials with the knowledge of the matter.
There were no comments on the news report published the Wall Street from Ant Group. There were also no comments on the news made by the Information Office of the State Council, China's cabinet.
Innovation in the fintech industry was being stifled by the regulatory system of China, Ma had told a summit in Shanghai on October 24. He had also said that regulators need to bring in reforms to renew growth in the industry.
The public listing of Ant was effectively stopped after a chain of events was triggered off by Ma’s speech, claimed reports earlier this month quoting sources.
Reports had been started to be compiled by Chinese regulators soon after Ma's scathing speech, claimed reports. The proves included the manner in which Ant had used digital financial products such as Huabei, which is a virtual credit card service, for encouraging poor and young people to pile up large amounts of debt that they could not handle.
A report on public sentiment about Ma's speech was compiled by the general office of the State Council and later submitted it to senior Chinese leaders including President Xi, Reuters had reported.
(Source:www.channelnewsasia.com)
The public listing of the company would have been the largest ever in the world. The decision of the Chinese regulators to ask the company executives to stop the IPO was announced a few days after a public attack on the country's financial watchdogs and banks was launched by the fintech giant's billionaire founder Jack Ma.
Chinese regulators were personally ordered by President Xi to probe the activities of the company and to effectively shut down Ant's stock market flotation, said the news report citing Chinese officials with the knowledge of the matter.
There were no comments on the news report published the Wall Street from Ant Group. There were also no comments on the news made by the Information Office of the State Council, China's cabinet.
Innovation in the fintech industry was being stifled by the regulatory system of China, Ma had told a summit in Shanghai on October 24. He had also said that regulators need to bring in reforms to renew growth in the industry.
The public listing of Ant was effectively stopped after a chain of events was triggered off by Ma’s speech, claimed reports earlier this month quoting sources.
Reports had been started to be compiled by Chinese regulators soon after Ma's scathing speech, claimed reports. The proves included the manner in which Ant had used digital financial products such as Huabei, which is a virtual credit card service, for encouraging poor and young people to pile up large amounts of debt that they could not handle.
A report on public sentiment about Ma's speech was compiled by the general office of the State Council and later submitted it to senior Chinese leaders including President Xi, Reuters had reported.
(Source:www.channelnewsasia.com)
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