The Party steps on Ant; US election; Plenum documents; China punishes Australia
The Party has once again reminded all private entrepreneurs that no matter how rich and successful you are it can pull the rug out from under your feet at any time.
The Ant Financial IPO has been halted in both Shanghai and IPO. The proximate cause is a draft of new regulations around micro-lending that could have a materially adverse impact on Ant’s business.
Speculation is rife however that the real reason is Jack Ma’s criticism of regulators and risk management at the Bund Summit on October 24, in a speech he gave to an audience that included many PRC financial regulators. It is possible that Ma’s rant was a reaction to the new regulations that he already knew were coming, and his understanding of how much they might hurt Ant’s business.
Ma gave his speech just a couple of hours after Vice President Wang Qishan, perhaps the godfather of China’s modern financial system, warned about risks in the financial system -Financial Sector Should Avoid ‘Wrong Paths’ of Speculation, Bubbles an…