The Chinese GoThe Chinese govt’s issue with Jack Ma Gupta said Jack Ma could not go for Ant Group’s IPO right now, or maybe even in the near future, and definitely not at that valuation because his value has been shot down.

[PilliBeta]

The Chinese govt’s issue with Jack Ma

Gupta said Jack Ma could not go for Ant Group’s IPO right now, or maybe even in the near future, and definitely not at that valuation because his value has been shot down. Alibaba lost almost anything between 16 and 20 per cent of its value after the Chinese action.

 

Digital financial technology activities form 63 per cent of his turnover, while the traditional payments business contributes 36 per cent.

 

Gupta said this meant if Ma has to stop his fintech business, as ordered by Chinese regulators, he would lose 63 per cent of an operation that posted 60 per cent growth last year.

 

He then looked at the larger picture and explained why the Chinese authorities were going after Ma. He said Ma became a superstar in China and everything he touched turned to gold, which was a problem due to the vast inequality China is witnessing.

 

Over 60 crore people in China live on less than $150 a month, at a time when China has more billionaires than the US and India combined. While consumption per capita has declined by 5 per cent in China, spending on luxury goods has risen by 50 per cent. So the rich got richer and the poor, poorer, he said.

 

The Chinese Communist Party did not like this disorderly expansion of capital, and told Ma he was getting too big, said Gupta.

 

Xi’s brand of capitalism

Apart from Ma, the Chinese government was also putting pressure on Tencent, which is a huge investor that has put its money in Indian ventures such as Dream11 (title sponsor of IPL) and Swiggy, among others. Gupta said many believe President Xi Jinping was taking China back to 1950s-style communist control.

 

He explained that Xi did not like anybody becoming too big or acquiring a voice. So the logic is that “you can do your business, but you should always know that the party is superior”. So, Xi-nomics is a new kind of state capitalism that the Chinese president was revealing.

 

According to Gupta, there are three features of Xi-nomics. First, tight control on the economic cycle and debt machine — banks, etc. Second, a more effective administrative state, allowing bankruptcies and patent lawsuits in a more orderly manner than before. “The Wild West capitalism will not be allowed,” said Gupta. Third, blurring the boundary between the state and private firms.

[Spartan]

ali baba assam aitundi anduke

[PilliBeta]

He explained that Xi did not like anybody becoming too big or acquiring a voice. So the logic is that “you can do your business, but you should always know that the party is superior”. So, Xi-nomics is a new kind of state capitalism that the Chinese president was revealing.

[sri_india]

gee sollu antha endhuku ... jack ma going to accept keep ANT group under regulations like traditional bank

[r2d2]

elsewhere..

Chinese tycoon Lin Qi, Chairman and CEO of Yoozoo best known for Game of Thrones: Winter is Coming strategy game is believed to have been poisoned to death. The Shaghai police said that one of Lin's colleagues, identified by his surname Xu, was the main suspect. Lin Qi died on the day of Christmas.

 

[PilliBeta]

8 minutes ago, Spartan said:

ali baba assam aitundi anduke

They are saying they are going to go behind Tencent also

[sri_india]

1 minute ago, PilliBeta said:

They are saying they are going to go behind Tencent also

drama ....

[PilliBeta]

1 minute ago, sri_india said:

drama ....

Apart from Ma, the Chinese government was also putting pressure on Tencent, which is a huge investor that has put its money in Indian ventures such as Dream11 (title sponsor of IPL) and Swiggy, among others. Gupta said many believe President Xi Jinping was taking China back to 1950s-style communist control.

 

He explained that Xi did not like anybody becoming too big or acquiring a voice. So the logic is that “you can do your business, but you should always know that the party is superior”. So, Xi-nomics is a new kind of state capitalism that the Chinese president was revealing.

[PilliBeta]

8 minutes ago, r2d2 said:

elsewhere..

Chinese tycoon Lin Qi, Chairman and CEO of Yoozoo best known for Game of Thrones: Winter is Coming strategy game is believed to have been poisoned to death. The Shaghai police said that one of Lin's colleagues, identified by his surname Xu, was the main suspect. Lin Qi died on the day of Christmas.

 

It happened as naturally as zhang zhan's trial. If she dies, that is also natural. She is not important, so all information on Weibo about zhang zhan should be erased. 

[sri_india]

5 minutes ago, PilliBeta said:

Apart from Ma, the Chinese government was also putting pressure on Tencent, which is a huge investor that has put its money in Indian ventures such as Dream11 (title sponsor of IPL) and Swiggy, among others. Gupta said many believe President Xi Jinping was taking China back to 1950s-style communist control.

 

He explained that Xi did not like anybody becoming too big or acquiring a voice. So the logic is that “you can do your business, but you should always know that the party is superior”. So, Xi-nomics is a new kind of state capitalism that the Chinese president was revealing.

LOl , you believe this?

 

china needs Alibaba group .... they already lost huawei dominance in other countries , and bytedance due to tictok issue ..... Alibaba , tencent , baidu are weapons for CCP ......

[PilliBeta]

3 minutes ago, sri_india said:

LOl , you believe this?

 

china needs Alibaba group .... they already lost huawei dominance in other countries , and bytedance due to tictok issue ..... Alibaba , tencent , baidu are weapons for CCP ......

If Jack Ma becomes more powerful than Xi Jingping, CCP will not like it. He can be given his wealth. 

[r2d2]

15 minutes ago, PilliBeta said:

Xi-nomics is a new kind of state capitalism

[sri_india]

3 minutes ago, PilliBeta said:

If Jack Ma becomes more powerful than Xi Jingping, CCP will not like it. He can be given his wealth. 

neetho argument cheyalenu kaani .... Jack maa didn't go against CCP , just  over confidence tho chesina comments about regulations (if you see the actual video) and CCP using this situation to control all tech giants before they bend USA ....

[Telugodura456]

I havent seen anything wrong or unusual from CCP till now. CCP presented draft regulation on anti-monopoly practices on Nov 11. These regulations though tighter than USA are on part with western europe. Nothing unusual there. Also markets did not care.

Regarding Ant - its a different ball game. Ant enjoyed a wild ride from regulation which even no US company enjoys. Essentially it was lending money but with none of regulations a bank faces to ensure there is no run on bank and no collapse of financial system. That is really something no country can afford. So China is correct on clamping down Ant.

Alibaba may get fines for some small anti-competition practices but otherwise the company is rock solid and safe. I actually bought some stock recently.