Andrew Collier, managing director of Oriental Capital Research, said that strict regulatory review of Alibaba affiliates and financial technology giant Ant Group may be detrimental to the Chinese economy and China’s financial technology industry.
The highly anticipated Chinese tech giant Ant Group was originally scheduled to be the world’s largest initial public offering (IPO), but was suddenly suspended in November.
Not long ago, the Chinese authorities interviewed Ma Yun, the controller of Ant Financial, and other executives of the company on regulatory issues.
“Indeed, when Jack Ma made a terrible speech…that annoyed many senior politicians, I thought it would be a one-off thing,”
He was referring to the speech of the Chinese billionaire in late October, and he reportedly appeared to criticize regulators in a controversial speech. Jack Ma is the founder of Chinese e-commerce giant Alibaba, which owns about 33% of Ant Group.
A few days later, the dual listing of Ant Financial in Shanghai and Hong Kong was suddenly suspended, causing Alibaba’s stock price to plummet.
Collier said: “Obviously, this is an excuse for the leadership and state-owned banks to crack down on the entire fintech…sector.” “Part of the reason is reasonable, because they worry about (probably) the financial crisis. However, they have been quite The serious approach cuts Ant Financial’s business.”
Since the Chinese authorities announced an antitrust investigation of the e-commerce giant last week, the troubles between Alibaba and Ant have been increasing. Chinese regulators also recently ordered Ant Group to adjust its business.
These developments caused Alibaba’s Hong Kong-listed stock to fall again-according to CNBC’s calculations, Alibaba’s market value has evaporated by HK$831 billion (approximately US$107 billion) in just two trading days.
Collier said that the regulatory scrutiny surrounding ants may revolve around both the desire to protect Chinese consumers and politics.
The analyst said: “Initially, I was a little convinced that (the People’s Bank of China) tried to protect consumers.”
“Now, because they have become so serious, they are making new accusations and telling them to reduce large amounts of business. Obviously, reducing the size of these companies is their political purpose, so they do not have a huge market share and threaten the national system. The presence.”
Collier said: “This is not good for the future of financial technology or the future of China’s economy.”