877 billion dollars – this is how much online shopping giant Alibaba and fintech company Ant have lost from their market value since their peak, according to CNN calculations. The two companies suffered badly after their co-founder Jack Ma publicly criticized Chinese authorities in the fall of 2020.
By all accounts, however, the regulatory crackdown that has plagued China’s tech sector as a whole appears to be coming to an end.
Jack Ma lost $3 billion of his fortune after China halted the world’s largest IPO
Alibaba shares fell 10% on Tuesday
Context: In October-November 2020, Ant Group’s simultaneous initial public offering in Hong Kong and Shanghai was set to set a record, ahead of Saudi Aramco’s planned proceeds of $34.4 billion. Jack Ma’s company was valued at $310 billion.
Then the billionaire opened his mouth. At a financial forum, Ma commented that his country does not need new risk control measures, but instead innovative companies need to reach the population that is currently beyond the reach of traditional banking.
Jack Ma’s fortune melted $12 billion in two months
The new rules for the fintech industry in China are proving to be a problem for businesses
The claim that “China has no systemic financial risks because there is practically no financial system” and the comparison of state-owned banks to pawn shops that do not help companies in trouble brought all possible problems to Jack Ma’s head.
Ant’s IPO was canceled at the last minute, and all possible regulators pounced first on his business, and then on all other tech and entertainment entrepreneurs. At the height of the authorities’ campaign in 2021, Chinese business lost 3 trillion. dollars from its market capitalization.
Where is Jack Ma?
New claims provide a possible answer
Jack Ma himself also disappeared, which gave rise to much speculation.
Details: The slowdown in the economy due to anti-epidemic measures and the ensuing social unrest have caused Beijing to loosen its grip.
Bloomberg: Chinese authorities are trying to bring Jack Ma back to the country
Beijing aims to create a “favorable image” for private business in China
On Friday, financial regulators fined Ant Group $984 million for breaches of consumer protection and corporate governance rules. The amount is large, but with it the regulatory ambiguities end and this, according to analysts, will “free up” the market value of the various companies.
What’s next: Ant Group has launched a share buyback at a market valuation of $78.5 billion, i.e. 75% lower than the peak value. According to CNN, a new IPO may be in the works.
Meanwhile, Jack Ma is now appearing in public, but at least he is not known to have criticized the authorities in his homeland again.
2023-07-11 06:00:15
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