China blocked Jack Ma's Ant IPO after investigation revealed
Comment of the Day

February 18 2021

Commentary by Eoin Treacy

China blocked Jack Ma's Ant IPO after investigation revealed

This article from the Times of India may be of interest to subscribers. Here is a section:

The main reason seemed to be “growing unease in Beijing over Ant’s complex ownership structure and the people who stood to gain most from it”. The Street Journal said in a report on Tuesday.

“Behind layers of opaque investment vehicles that own stakes in the firm are a coterie of well-connected Chinese power players, including some with links to political families that represent a potential challenge to President Xi and his inner circle” the report added.

One of Ant’s investors is Boyu Capital, a private equity firm founded in part by Jiang Zhicheng. Jiang Zhicheng is the grandson of former Chinese leader Jiang Zemin, Many of Jiang Zemin’s allies have been purged in Xi’s anticorruption campaign, though he remains a force behind the scenes the WSF said in its report.

Eoin Treacy's view

Many people are familiar with the fact that Chairman Mao was a prodigious reader of history. Few comment on the kind of history he focused on. His primary interest was in courtroom politics. He understood that he was now the emperor and that the only way to hold onto power would be to ensure his supporters were rewarded for their efforts. At the same time, they had to compete with one another for favour which strengthened his position. That’s how every dynasty functioned up to that point and he reintroduced the system of palace politics.

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