Wall Street Journal reports actual reason of China’s shut down Alibaba IPO
When Jack Ma’s historic IPO release had been shut down at the last moment by Chinese regulators last year, it was being speculated that this was a strong comeback that the Chinese leader Xi Jinping had delivered after Jack Ma’s public criticism of China’s economic structures.
Ma had in a public speech, criticized China’s regulation system saying that it was preventing innovation and was mediocre compared to international banking rules.
However, Chinese government officials and financial experts had presented that the real reason for the suspension of the IPO was the Party’s scepticism of the complex ownership structures of the company, which they have said would go on to allow some politically ambitious individuals in China to increase their assets and power, thereby posing as a threat to the leadership of Xi Jinping.
According to the report by the Wall Street Journal, the decision to shut down this IPO was not a result of China’s intolerance towards criticism but rather its cautiousness towards powerful figures.
These figures, along with Jack Ma and his prime subordinates, would have been able to add billions of dollars to their net worth’s overnight in an IPO that would’ve resulted in the company being valued at $300 billion.