Jack Ma Conveys Ant Group's Intention to Sell Shares to Chinese Government

WSJ "Conveyed Intentions in Reserved Meeting with Financial Authorities"
"Criticized Financial Policy Then Yielded"... Chinese Government Decision Still Pending

[Image source=Reuters Yonhap News]

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Jack Ma, the founder of Alibaba and the largest shareholder of Ant Group, is reported to have conveyed his intention to sell Ant Group shares to the Chinese government. The Wall Street Journal (WSJ) cited sources on the 20th (local time), stating that during a scheduled meeting with Chinese financial authorities on the 2nd of last month, Ma expressed, "If the country needs it, it can take any platform held by Ant Group."

The Wall Street Journal reported that Jack Ma, cornered, is ready to do whatever the state wants and mentioned the sale of Ant Group shares. It is not known whether the share sale refers to the sale of all of Ma's holdings or just a part, but the proposal to sell shares is interpreted as a willingness to be under the control of Chinese financial authorities.

It is reported that Chinese financial authorities have not made any decision regarding Ma's proposal. However, the Wall Street Journal added that after applying strict capital regulations, measures such as capital increases by state-owned institutions like banks to cover the capital shortfall could be considered. In this case, Ant Group could escape the monopoly regulations imposed by the Chinese government. Chinese financial authorities are reportedly demanding that Ant Group raise its reserve requirement ratio from the existing 5% to 30%.

The media further predicted that Chinese President Xi Jinping and other Chinese leaders, concerned about the collapse of the Chinese financial system, will curb the disorderly capital expansion of IT companies and that regulations such as antitrust measures will be strengthened in the future. The Wall Street Journal added, "China has also nationalized interbank payment systems (platforms) like UnionPay in a similar manner."

On October 24th, Jack Ma criticized China's financial policies at an event attended by high-ranking Chinese officials including Vice President Wang Qishan and People's Bank of China Governor Yi Gang, saying, "Chinese financial authorities are still stuck in 'pawnshop-style operations' where loans are only given with collateral." Subsequently, on the 2nd of last month, four Chinese financial institutions?the People's Bank of China, the China Securities Regulatory Commission, the China Banking and Insurance Regulatory Commission, and the State Administration of Foreign Exchange?held a meeting with Jack Ma and other Ant Group executives (CEOs) and then temporarily suspended Ant Group's planned listings in Hong Kong and Shanghai scheduled for the 5th. This led to analyses that the Chinese leadership was putting the brakes on Ant Group's listing to discipline Jack Ma.

Regarding the listing delay at that time, the Shanghai Stock Exchange stated, "This measure is in accordance with relevant regulations, and Ant Group must disclose the related facts."

This content was produced with the assistance of AI translation services.