WSJ "Delay of Ant Group IPO in China Also Linked to Xi Jinping's Rival Suppression"

Ant Group Major Shareholders Include Xi Jinping's Political Opponents
WSJ "IPO Blocked Over Concerns These Figures Would Benefit"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] It has been claimed that one of the reasons the Chinese government blocked the listing of Ant Group, Alibaba's fintech affiliate, last November was to curb potential political rivals of President Xi Jinping.

On the 16th (local time), The Wall Street Journal (WSJ), citing Chinese government officials and experts, reported, "During the investigation conducted before Ant Group's initial public offering (IPO), it was revealed that individuals who could threaten President Xi's power extension were included in Ant Group's governance structure." It implies that the IPO was suddenly halted because these individuals were expected to gain enormous economic benefits if Ant Group went public.

WSJ mentioned political rivals of President Xi who were expected to benefit, including Jiang Zhicheng, the grandson of former President Jiang Zemin, and Li Botang, the son-in-law of former Standing Committee member Zha Qinglin, a close aide of former President Jiang.

Specifically, Boyu Capital, a private equity firm co-founded by Jiang Zhicheng, invested in Jinguan Investment Company based in Beijing, which holds about 1% of Ant Group's shares, making it one of the top 10 shareholders.

Li Botang also indirectly holds shares in Ant Group through multiple layers in a similar manner.

Since coming to power in 2012, President Xi has solidified his power base by excluding associates of former President Jiang from various power institutions, including the Standing Committee of the Central Political Bureau.

Meanwhile, Jack Ma, the founder of Alibaba who leads Ant Group, made critical remarks about financial authorities ahead of Ant Group's IPO push last November, after which the IPO was suddenly postponed. Subsequently, the Chinese government demanded that Ant Group convert into a financial holding company subject to strict regulatory supervision. In response, Ant Group recently submitted a business restructuring plan centered on the holding company conversion and received approval from the authorities.

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