The Chinese authorities decided to rein in the founder of Alibaba Group and one of the richest people in the country Jack Ma , writes The Wall Street Journal . The state is going to increase its share in the companies it owns.
According to sources of the publication in the country’s leadership, Beijing is going to simultaneously strengthen control over Ma and his business and at the same time maintain the “innovative spirit” that contributed to the strengthening of China’s technological position in the world.
Ma’s conflict with the Chinese authorities began after the state in November demanded that the billionaire suspend the IPO (public listing) of the Ant Group, the financial division of the parent structure of Alibaba Group. It was expected that the IPO will take place simultaneously on the Shanghai and Hong Kong exchanges and will be the largest in history, but Chinese regulators warned Ma that the company may not comply with important requirements of national legislation.
Subsequently, it became known that the authorities were seeking to force Ma to split Ant Group in order to focus on the company’s original business, the Alipay payment system. Beijing is concerned that Ant’s insurance and banking subsidiaries fail to comply with many industry regulations and requirements, and monopolize the market.
At the same time, regulators, including the People’s Bank of China, do not express their demands directly, but urge Ma to “correct the situation” and realize “the need to reform his own business.”