When China’s leader Xi Jinping canceled Ant Group’s initial public offering late last year, his motives became clear: he was worried that Ant would add risk to the financial system and was furious. before its founder, Jack Ma, for criticizing his signature campaign to bolster financial resources. supervision.
There was another key reason, according to more than a dozen Chinese officials and government advisers: the growing unease in Beijing over Ant’s complex ownership structure and the people who would earn more than would have been the largest IPO in the world. world.
In the weeks leading up to the financial technology giant was scheduled to be made public, a central government investigation that has so far not been reported found that Ant’s IPO brochure obscured the complexity of the firm’s ownership, according to government officials and advisers, who were aware of the investigation. Behind the opaque investment vehicle layers that own stakes in the company is a coterie of well-connected Chinese actors, including some with ties to political families who pose a potential challenge to President Xi and his inner circle.
These individuals, along with Mr. Ma and the company’s senior executives, took billions of dollars from a list that would have valued the company at more than $ 300 billion.
During his eight years as president, Xi has ousted many of his rivals, and his possession of power now compares to that of Mao Zedong.