When China’s leader Xi Jinping destroyed Ant Group’s initial public offering late last year, his motives became clear: he was concerned that Ant had added the financial system to the risk, and angry at its founder, Jack Ma, because he criticized his signature campaign to strengthen the financial government. supervision.
According to more than a dozen Chinese officials and government advisers, there was another important reason: growing discomfort in Beijing over Ant’s complex ownership structure – and the people who could benefit most from the world’s largest IPO.
According to officials and government advisers, who are aware of the investigation, the previously unannounced central government investigation was released in the weeks before the financial technology giant was to be published. Behind layers of opaque investment vehicles that hold the stake in the firm are a large number of well-connected Chinese power players, including some with links to political families that are a potential challenge for President Xi and his inner circle.
These individuals, together with Mr. Mom and the company’s top executives pocketed billions of dollars from a listing that would value the company more than $ 300 billion.
During his eight years as president, Mr. Xi defeated many of his opponents, and his hold on power now compares with that of Mao Zedong.