When China’s leader, Xi Jinping, last year overturned Ant Group’s initial public offering, his reasons seemed clear: he was concerned that Ant was adding risk to the financial system and furious at its founder, Jack Ma, for criticizing his campaign to strengthen the financial supervision system.
There was another important reason, according to more than a dozen Chinese officials and government advisers: the growing unease in Beijing about Ant’s complex ownership structure – and the people who would most benefit from what would have been the world’s largest IPO .
Weeks before the financial tech giant went public, a central government investigation not previously reported found that Ant’s IPO prospectus obscured the complexity of the company’s ownership, according to government officials and advisers, who were aware of the investigation. . Behind layers of opaque investment vehicles that have stakes in the company is a circle of well-connected Chinese actors, including some with ties to political families that pose a potential challenge for President Xi and his inner circle.
These individuals, along with Mr. Ma and the company’s top managers, could pocket billions of dollars in a listing that would have valued the company at more than $ 300 billion.
During his eight years as president, Mr. Xi left many of his rivals behind, and his hold on power now compares to that of Mao Zedong.