Chen Yulu, deputy governor of the Communist Party of China’s central bank, said on the 15th that Ant Group has set up a working group to rectify the situation and is working on a timetable for rectification. Some analysts believe that the CCP has released the signal to let Ma go under multiple pressures.
On January 15, Chen Yulu introduced the situation related to the 2020 financial statistics at a press conference of the State Council Information Office of the Communist Party of China. When talking about the handling of the Ant Group, he said that the Ant Group has set up a working group for rectification and is working on a rectification timetable, while maintaining the continuity of business and normal operation of the enterprise to ensure the quality of financial services to the public. The financial management department is also maintaining close regulatory communication with Ant Group, and progress on the work will be released in a timely manner.
Some commentators believe this is good news for the troubled Ant Group, as the Chinese Communist Party officials have released a signal to let Ma and his business live.
Commentator Wen Xiaogang said, since the Ant Group was stopped by the Chinese Communist Party before listing, Alibaba was investigated by the Chinese Communist Party in the name of anti-corruption, Alibaba was fined 5 billion yuan by the Chinese Communist Party, deposit products were removed from the platform, Jack Ma disappeared for two months, and even some Chinese Communist Party officials said Alibaba would be partially nationalized, etc. These news are not good news for Jack Ma and Alibaba, but now the Chinese Communist Party has officially released the news that the Ant Group has started to rectify the situation, according to the context of the Chinese Communist Party, this means that Jack Ma has conceded and admitted his mistakes, and affirmed that the Ant Group has corrected its mistakes.
Wen Xiaogang believes that this is the result of internal and external pressure.
First of all, from the international point of view, due to the plague and the trade war, for most of this year, the mainland’s exports have plummeted, and foreign investment has dropped sharply, coupled with the mainland’s own sluggish economy, the CCP is in dire need of foreign investment, so the CCP lifted some of the restrictions on foreign investment in the mainland in the middle of the year, with the aim of attracting foreign investment. However, the CCP called a halt to the listing of Ant Group two days before it went public, when the shares of Ant Group had already been sold and the fund had already completed its subscription. This move of the CCP is not only a heavy blow to Ant Group, but also a heavy blow to the confidence of international capital investment in the mainland, because no matter how many reasons the CCP makes to ban the listing of Ant Group, to the market, the CCP is using administrative means to blatantly breach the contract. This move by the CCP has caused world funds that are willing to invest in the mainland to stop in their tracks and be in a wait-and-see mode. With the outbreak of the plague in the Western world again, it is bound to hit the mainland’s exports again, making the mainland’s foreign exchange earnings drop.
Second, from the mainland domestic point of view, the Chinese Communist Party’s crackdown on Alibaba and Jack Ma has caused everyone in the mainland private entrepreneurs to be at risk. Ma Yun is the founder and de facto controller of the largest private enterprise on the mainland, and has been elected the richest man on the mainland many times.
In addition, it is clear from the ongoing efforts of the Chinese Communist Party to regulate private enterprises that they are worried about their growth and impact on state-owned enterprises and want to reduce their scale. The Chinese Communist Party has recently been increasing the regulation of private enterprises in the name of anti-monopoly, Alibaba, Tencent, etc. are in that industry giant existence, the Chinese Communist Party has been fostering state-owned enterprises in various industries since 2018, to take a variety of suppression of private enterprises such as the establishment of the Chinese Communist Party branch, and even proposed that private enterprises have completed their historical mission, it is time to withdraw from the stage of history, the Chinese Communist Party has caused panic in private enterprises, although after the Chinese Communist Party surface This is the essence of the Chinese Communist Party and cannot be changed.
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