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- Chinese President Xi Jinping halted Ant Group’s historic $ 37 billion initial public offering after its founder, Jack Ma, criticized government leaders, The Wall Street Journal reported.
- A week before the Chinese fintech went public, Ma made inflammatory remarks that were not well received by the president or other government officials, according to the report.
- Xi has shown a low tolerance for large private companies that accumulate wealth and power while threatening his authority, The Journal said.
- It is unclear whether Xi or another government official was the first to suggest suspending the IPO, the newspaper said.
- Visit the Business Insider home page for more stories.
Chinese President Xi Jinping halted Ant Group’s record IPO after its founder, Jack Ma, snubbed government leaders, The Wall Street Journal reported Thursday.
The public listing of Chinese financial technology was expected to be the largest in history, at $ 37 billion, but China’s new loan rules ruined its plans and financial authorities eventually suspended the offering.
Xi has not been a fan of the rise of large private companies that amass wealth and power in the country, as they are seen as challenging his authority, The Journal said.
At a conference in Shanghai on October 24, about a week before Ant went public, Ma dismissed global banking rules, saying they were not suitable for healthy innovation.
Ma quoted Xi as saying “success doesn’t have to come from me” and said he wanted to use innovation to help solve China’s financial problems, The Journal reported. Sources told the newspaper that government officials thought his comments were aimed at damaging the reputation of regulators.
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Ma also criticized regulators who enforce a set of international banking rules as “a club for the elderly,” The Times reported.
Xi and other government officials who read reports about Ma’s speech were enraged by the comments, The Journal reported. Following Xi’s instructions, Chinese regulators investigated Ant’s offer and the IPO was suspended on November 3.
The fintech had already secured more than $ 3 trillion in orders from individual investors through its dual listings in Hong Kong and Shanghai.
It was unclear whether Xi or another government official was the first to suggest suspending the IPO, The Journal said.
Ant Group did not immediately respond to Business Insider’s request for comment.
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