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1/4— Michael Pettis (@michaelxpettis) November 5, 2020
Many analysts are arguing that the surprise suspension of the Ant IPO was mainly, or at least partly, the consequence of Jack Ma’s angry speech two weeks earlier, but my understanding is that his speech was itself a response to regulatory...https://t.co/gajipOmLiu
2/4— Michael Pettis (@michaelxpettis) November 5, 2020
concerns that were already being widely discussed.
If true, perhaps the IPO should've been withdrawn much earlier by Ant and its bankers, pending clarification of the new regulations. It may be that regulators were not the only ones to have handled this whole thing badly.
- To govern well, you can’t pick and choose when and how hard to regulate; the secret sauce is consistency.— Peter Elstrom (@pelstrom) November 5, 2020
- Beijing is looking as childish and moody as Trump on the day of the U.S. election.
4/4— Michael Pettis (@michaelxpettis) November 5, 2020
Ant and its bankers were doing everything possible to ensure the company was seen as a tech company, with much higher valuations than mere banks. Now it seems that Ant may indeed be a bank.
3/4— Michael Pettis (@michaelxpettis) November 5, 2020
By the way this article explains that had the IPO occurred, Ant would have become overnight the most valuable bank in the world, which is ironic because the IPO was very pointedly organized not as a bank IPO but rather as a tech IPO.
FT: “The party is pushing back”: why Beijing reined in Jack Ma & #Ant. https://t.co/1LBekhkbBb via @financialtimes— 🚶🏻Curtis S. Chin (@CurtisSChin) November 5, 2020
“…the motivations of China’s leaders in scuppering the #IPO. derive mostly from calculations of political power & status, Chinese analysts & state bankers say.”
Check out @shuli_ren's take on the Ant IPO:— Peter Elstrom (@pelstrom) November 5, 2020
- It’s episodes like this that remind us how capricious and thin-skinned Beijing’s policy makers can be.
- Somehow, Beijing has proved Ma’s point: China’s bureaucrats don’t know what they’re doing. https://t.co/7N8nK79cHf
Your call for IPO pause: 1) Ma was already in private talks with regulators over the new rules (Ant denies), 2) Ma went rogue. @psb_dc @thepsironi @efipm @BrettKing @alvinfoo @ursbolt @spirosmargaris @jimmarous#fintech #banking #innovation #technology https://t.co/VG9fOfvmnr— Richard Turrin (@richardturrin) November 5, 2020
There have been some good posts about why Ant's IPO was blocked (which would have been the largest ever). It goes well beyond 'Xi be flexing,' which is what I had thought. Ant's opaque lending model was creating systemic default risk through 100x leverage. https://t.co/UN2G17o3Bv— Postal Hero (@Mont_Jiang) November 4, 2020
China’s move to halt world’s No.1 IPO sends global investors a message: Any financial opening will only be done on terms that benefit President Xi Jinping & the Communist Party https://t.co/sDLEuvn30b @dantenkate @endacurran @Colum_M @KariSoo1 @LucilleLiu @SofiaHC1 @ScanlanDavid— Lulu Yilun Chen (@luluyilun) November 4, 2020
Yet…— 🚶🏻Curtis S. Chin (@CurtisSChin) November 4, 2020
At #Fintech #HKFinTechWeek celebrations, a #realitycheck:
the suspension of #Ant #IPO in Shanghai & Hong Kong underscores a reality—#China #CCP 🇨🇳 Party business takes precedence over business & transparency. $BABA https://t.co/q5Kl1tjgA0 @endacurran @SofiaHC1 @luluyilun
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