How Ant's Plans for a $34 Billion IPO Unraveled | WSJ
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- เผยแพร่เมื่อ 21 ก.ย. 2024
- Days before Chinese fintech giant Ant Group was scheduled to go public in what would have been the world’s largest listing, regulators put plans on hold. WSJ’s Quentin Webb explains the sudden turn of events and what the IPO suspension means for Ant's future. Photo: Aly Song/Reuters
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#WSJ #Ant #IPO
It's way too easy to get loans on Ant. Some of my friends in China are able to take out a loan for 5x or 6x of what their monthly wages are in Ant.
Overleveraged lending to young people is a bubble disaster waiting to happen, the algorithm for Ant favors over lending and when the core customer for Ant are young adults without a lot of financial literacy it is a huge risk to stability in the financial market.
Imagine how much of a drag on the domestic economy it would be if young people are spending most of their wages paying back loans instead of spending it in personal consumption which simulates the local economy.
@Xendex Motorsports the official company name of AliPay (or Zhifubao
They are all smart, talent chief officers. They know what to do
@@Joe-pl5fc It's not Ant's problem if the borrower defaults on the loan. However it is Ant's problem if they are lending to sub-prime borrowers. Would you say it is responsible to lend $30k to someone that only makes $5k? That is the problem, the algorithm for Ant favors over lending and when the core customer for Ant is young adults without a lot of financial literacy it is a huge risk to stability in the financial market.
@@Joe-pl5fc Ant is creating the American problem. American in debt by credit card loans, personal loans and etc. Ant so called tiny loans will quickly dominate the Chinese market that will create the same problem like the US.
@@Joe-pl5fc What Ant's tiny loans are just the beginning. It wouldn't be just that. It's like a bubble, even worse when Ant got the data of the entire population of China knowing those who are eligible to loan and become their debtors. When most of them become debtors, Ant will have problems in growth. They will loosen their restrictions to pass loans in order to continue their expansion. Regardless of Ant is innovative enough to put conventional institutions like banks out of business, it will become a critical problem to the country and it will be really too big to fail.
Jack ma: ask for regulations
China : regulates
Jack ma:
he is a puppet anyway
That's absolutely wrong, did you even watch? Jack Ma wanted companies to be better regulated, to drive competition and innovation. It's a good thing. Chinese govs don't like criticism, so they blocked Ant's IPO. CCP is full of sensitive pussies, but this is how they regulate their people. Scare tactics.
Yeah watch the video first before commenting for likes buddy
@@xXZian6Xx the sequence is wrong, it is China publish new regulations first , then Jack Ma got mad and did some ridiculous act
Jack wants deregulation. He even claimed that the Basel Accords are for the “old men” in that same talk. Feel free to check it out.
I love ant’s product. But it is a de-facto financial company and It should be regulated.
BINGO.
@@klam77 Regulation is part of IPO anywhere around the world. There is no company in the world that can go IPO in any markets without fulfilling Regulators Scrutiny. Otherwise there will be no accountability and no protection to investors in general.
Jack ma was admitted like all others successfully entrepreneurs in the Communist party, exactly for the purpose of hearing his voice, in the close plenum which is a dedicated place for expressing opposition and difference not in the média circus by using populist and show off and antagonizing the regulator and diminishing their role.
It's a reminder for everyone that un China no one even the wealthy one can be above the law or think himself more intouchables
Good! Finally a Central Bank Regulator which has the courage and foresight to do its job properly and protect the overall health and stability of the vast majority instead of the interests of the elites.
Well said !
Jack Ma strongly opposed Basel Agreement.... I think no country's government would allow this happen...
Yep! Agree, not only in China, but all countries wont allow this to happen. It's a matter of national security and sovereignty.
@@iamrmdp17 It is a matter of prosperity and even peace for all humans. Remember, the great depression leads to the WWII
No country's government would allow a citizen to freely give his opinion? That's because the Chinese are not citizens of China; they are subjects of an unelected, fascist government.
US did, hahah what they got in 2008?🤔
@@kevinkent6351 comunist*
Ant is a payment service company which is also working as a lending company. They also are insurance and mutual fund company. They also leverage micro loan as asset and use it as asset back security to get more money to loan out and creat value out of loan on top of loan. They are just reinventing the pre 2008 us finically playbook. That is one of the reason they won’t ipo in US or Europe.
True. Chinese gov't did the right thing, or it could be the next financial crisis to China and the world.
"Great innovation should not be regulated with yesterday's means"... so, he himself wanted new regulations.
nope. he created new problems for china. china isnt ready for this pile of money from the public to be manipulated by a single corp. whatever you do in china, you got to understand, ccp is the sky, ccp is the earth and ccp is everywhere like air.
@Boy Kulot u got to understand how modern china got so rich n powerful in order to know why they wouldn't let ant launch its ipo.
@Boy Kulot In America the political parties are at the mercy of capital, in China it's the other way around.
unregulated system will get you another 2008. Ant financial as a FINANCIAL company should be treated as such by regulators.
That's right
can someone explain to me whether is it a good choice or a bad choice that the government decided to halt ANT group IPO? P.S I am not a financial expert
Ant group definitely should be regulated. It is issuing rounds and rounds of ABS for its loans. That’s how 2008 financial crisis began.
Simple! Ant group simply violated the Basel Accords by issuing rounds and rounds of assets backed securities
@Xendex Motorsports it is a company started as payment processing company for Alibaba online payment. It is now grow to equivalent of Visa+JPM+Payday lending combine. The reason they are in travel is because Ant did micro loan to consumers and use it as asset to borrow more money which they use it to loan to consumer which they use it as asset to get more money. In short they over leverage more then what regulator like.
After have already become the biggest in the business, he just pulled out a regulation card not only on himself but also on his growing competitors.
Bravo!
IMO The new capital reserve regulation on Ant foundamentally changed the profitability of its core business. So did Ant' s valuation. It' s reasonable that gov stopped the IPO.
Ant should be regulated as financial company , not a tech company.
The US government loosened its supervision on Wall Street, and Wall Street caused a subprime mortgage crisis, almost destroying the global capitalist system.
Now Jack Ma says that the Basel Agreement is out of date, and Wall Street does not criticize him.
👍🏻👍🏻.... Well said
Because Wall Street doesn’t care about people’s statements unless it directly affects a Wall Street listed company stock. Complaining about VOLUNTARY regulation (the Basel Accords) wouldn’t get Jack Ma in trouble anywhere. Jack Ma only got in trouble because he started directly criticizing China’s own backing policies.
Wallstreet is waiting to short the company, you are here talking about response, the don't care about that
Wall Street didn't cause the crisis. Mortgage lenders and servicers gave out bad loans, that got repackaged by the government into derivates that Wall Street bought.
Wall Street ended up holding all the risk, but it was Fannie Mae and Freddie Mac that hid the risk.
Ant is already so big, does it need IPO to expand even more? Sounds like there needs to be some friendly competition. It is so big, it may be becoming a monopoly. $17 trillion transaction per year is not a small number. More competition may be better for consumer as well.
They just want western money, which the west is falling over themselves to give it to them
$17 trillion dollar worth of transaction per year, imagine all those consumer data, how they spend money, consumers habits, all those data owned by ant financial. That’s got to be worth a lot of money there. Data is the new gold in this day and age. There are many banks in china, but there is only one Ant Financial who has influence over a large scale of an entire nation’s economy. It’s too big and too important to fail at this point to an entirely new level of it’s own. It’s the heart of the economy.
Jack Ma: Ask for regulation
Regulator : halt IPO
Jack Ma: Surprise Pikachu face
The same problem is hapenning in america, the diference is that the american government is owned by tech companies, while in china they can be put under control and avoid economic e and social abuses.
Ant self-claimed to be a tech company, but at core it is a fincial company. You can't be "systematically important" financial institution while not regulated. The leverage ratio is reported to be over 50X , much higher than any banks in China.
Look say all you want about how good Ant's services are, but I'm happy that the regulators are doing their job. They take their job seriously
I even brought Ant's strategic placement fund but I'd have to say... they've got it coming. before Ma said those nonsense, I didn't know how bad it was, though their service is good indeed, still I never asked a loan from them.
Nicely explained.
Wait, so jack ma said that the financial industry should be better regulated, and then the chinese gov't stopped the ipo t implement better regulation on the financial industry, so what's the problem?
He said Basel is an old man club.
Without government regulation, ANT can easily cost a financial crisis in Chinese financial system! Jack doesn't know anything about finance!
I don't know who needs to hear this, you've got to stop saving money. Invest some part of it, if you really want financial freedom.
Invest in bitcoin, gold, silver, buy stock, forex market, commodities. Just invest and save yourself.
@nancy lovely Hey dude, this is 2020. People who aren't even traders make money from the crypto and forex markets and moreover there are already financial analysts and trading experts(PhDs) who have shelled out theories and ideas for years on how bit coin technically grows.
@@larryhenry5689 Exactly, Very Good point ✌🏻
If you think you're too lazy to trade or learn how to trade, just know I have some friends who invest in a platform where and experts devotes their time and help them trade and they get paid profit every week
@@d_ken
My trading mentor; Dr.Mrs Lydia Virginia Woodruff runs and investment platform like that, I paid in €15,500 just last week though its not the first time, and I got a paid profit of €39,600. It's been an amazing experience with her
U don't mess with the government in China
If given the chance, you know CCP would take out Jack Ma
Nah
No. Jack Ma is a legend in China
Why?
You do realize that Jack ma is a CCP membre ?
List in Singapore. Problem solved.
Firstly, it would not be allowed
Secondly, it has to change its business model
the problem is not about the IPO, it's the business model of easy loans.
@@obsidianstatue
exactly
Now it has to increase its cash reserve from 2% to 30%, and the round of refinancing limited from unlimited to 4.
Ant back from boasting as Tech company to Finance company
@@obsidianstatue It is referred to as "predatory loans" according to some reports from China
Kind of funny how as someone who doesn't speak Chinese, Jack Ma's tone seems SUPER harsh during that speech lol...particularly since he is super soft spoken when speaking English... in that speech it feels like he is almost aggressively yelling at the crowd lol (again, I don't speak Chinese so I have no idea if he was intending to be harsh or not)
That was a pretty normal tone when you speak Chinese and especially when you are mentioning something serious
What is this, an IPO for Ants?
You nailed it bro
Now we can see why this happened from SVB today
thankfully in India government has full control over digital payments with its own platform called UPI, private companies can use the API for UPI and give services to its customers, not just that, there is also a set market percentage allowed for any payment app, exceeding which they are not allowed to add customers, this helps crush monopolies and increase competition. Financial system of any country cannot be solely left in the had of private companies, even if it comes with slower economic growth, because in the end, accountability is what matters the most here.
Everyone’s not as lucky as Elon Musk to get a free chit everytime !!!
Elon Musk Money borrowed from China
cheers to you bro
Elon musk is not into fintech
@@klam77 You did not have to blaspheme dude.
News about china.
50 cent army: my time has come.
If that is the best you got, you don't deserve 50 cents.
Ant Group once used a capital of 3 billion to revolve out 300 billion RMB. I wonder if there are unregulated 100x leveraged companies in the United States?
Great article.
Y’all need to understand that ant had ultra high leverage and raised more money through abs, rounds of securitisation. This poses significant risk to the financial system thus the need for regulations. Somewhat similar to 2008
This screams the saying so well... It's not done until it's done.
Ant is doing ABS thing with much higher leverage. It is very very dangerous. It is absolutely correct to regulate the industry.
Well it should be divided into crawling 🐜 and flying 🐜 s
Great info but narration could add more emotions to it
The regulator has absolutely done the right the thing.
Ant group should just ipo in USA
NYSE also halted it... so he decided to list it only in China, and now he was also halted, because bruh you cannot list a company that doesn’t have a real regulation and doesn’t fulfills all the regulations
it's too risky to IPO in USA with Trump in charge
@@santiagorappy71 not surprising at all the Chinese enjoys being regulated all the time
@@TheDavidLiou well not anymore
@@AbcDef-ei6oc well it was during the planning of the ipo
It’s shocking that regulations came in at such a late stage of IPO. Ant’s business model is too dangerous and destructive to the long term health of any financial systems. Some people are either sleeping or .............
The regulators are correct on this case. The Chinese bank cannot bear all the risk.
awful sound quality. NEVER record a video thru headset in an open room. Its a shame WSJ cant get normal sound
Out of 100 dollars Ant lend out, 98% is borrowed from the bank, and the interest rate to Ant users is 4 times as the interest rate Ant borrows from the bank. This is using technology and innovation as a cover to ask for deregulation, so that Ant could take advantage of individual buyers/lenders. Yes, Ant is creating value by providing different way for individual to finance, but they also cover their higher default rate with higher interest rate. This should be looked and regulated before it becomes big as a systematic fraud.
Is this video superficial and didn’t explain where the risk of Ant is or this is so obvious in Wall Street that needs no explanation? CCP is just trying to prevent possibilities of another 2008 economic crisis, if anyone knows what caused it.
Very bad audio recording for such an amazing video content.
I think the regulator is just worried about the potential of causing another financial crisis.
i think is just the timing is wrong to sudden expect explanation from jack at the last minute to ipo.it should be way before the ipo.stupid regulator. without jack,the industry at china whatever it is will be a lame one. so keep optimist and smile Jack Ma.the ipo will go on.keep on innovate & disrupt Chinese business at china for china good.
why does an ant want to be a gi-ant?
U don’t challenge the party
Me and my friends from around the globe were soo hyped for this IPO..but uggh...
Jack Ma now like Khodorkovsky, and Alibaba like Chinese Yukos
The subprime crisis was not long ago.High leveraged securitization must be strictly regulated. This is what China's capital market with socialist characters is.
To prevent the capital from going extremely greedy,to maintain the system in an probable way, not to allow the capitalists earning every penny from the ppl but leaving the high crisis to the whole society.
China's system is more competitive and scientific.
indeed, I am really surprised that WSJ can distort Jack Ma's arrogant speech into a kind of anti-government taste... in that very same speech, Jack actually openly mocked Basel III and claimed that his company's technology is way smarter then Basel III.
I think every responsible regulator would question whether he is qualified to lead such a key financial critical company on the market.
China's system is not complicated at all, just Communist Party owns everything
Probably for the best.
Jack Ma is his own worst enemy
Chinese regulators are genius, they saw a big problem in the future and a future bubble way a head and with this new regulations they literally prevent a crash, they are prepared very fast for this one.
The first rule in business: Never provoke the Government!
jack ma not a sell out GG MY HOMIE
Biggest IPO? Huh $34 billion ? I thought Aramco was $2trillion . Can someone please explain to me I am confused? Or is the IPO saleable shares only a small part of the total market Cap of the company?
The will of the party trumps all.
没有讲到深层原因
故意不讲，把人引向“是马云说错话收到政府惩罚”的方向上
This is indirect proof Huawei is also controlled by the CCP
They have just shown their hand.
I think someone said the regulations contains anti-monopolistic behavior.
So suck it up Jack
this host voice is computer
Did ant just deliberately deliberately trigger a shorting...maybe
Jack Ma sounds really badass when he speaks using Chinese. I have never heard him speak in Chinese before. Being as US citizen, I have always watched his interviews wherein he speaks using english. In english he is comparatively slow and deliberate, though he has an excellent grasp of English. ... Jack Ma only owns 8% of Ant group. So no matter how much he angered the communist regulators, they will not overly damage the company just to prove a point to Jack regarding respect and conformity with their politics.So, i do not expect the IPO to be delayed for too long. Probably this is only going to make the IPO more valuable as the suspension builds and attracts more attention, thusly, more investors who want to buy shares.
I'll wait until the CCP allows ANT back in.
There's no way I'm not investing in this company.
There are so many missed investment opportunities in China's stratups from Alibaba to Tencent.
All have brought incredible returns for their early investors!
Go read about Naspers -a South African company and how it invested around $24M in Tencent back in around 2003 only to have that investment turn into over $100 BILLION currently!
Well said Lu! I didn't k kw about Naspers and their stake on Tencent. Thanks for that knowledge.
So what happens with retirement?
Retirement doesn't prevent one from moonlighting, one would reckon.
Any challenge (however insignificant it seems) to the absolute central leadership of the Party with Chairman Xi at its core is unacceptable and shouldn't be tolerated! The CPC made the right move here with this show of strength and unlimited power by crushing this lil ant.
CCP is wet paper dragon. The CCP is a giant extortionist in mainland, outside however, it is nothing more than an arrogant "domestic helper"
Haha, you are so right and idiotic...
i jus bought alibaba stock cus i know they gona clean up ant biz model and redo the ipo again. plus the promising future of china.
Love ❤️ this stock . Would be interesting to get more info on their expansion outside china
17 trillion😮 that's seriously a lot 😎👍
0:42 the music is beautiful
If to get loan is so easy. It Will follow the US financial crisis back in 2008. The history is repeated.
get squeezed out of market dumb old banks
No wonder so many Chinese businessmen move to California and Canada
0:47 reporters should qualify statements like this.
these kinds statements falsely implies that, or gives the impression that the west can not do it, is not advanced enough to do it, which is ridiculous because all the technology involved in these implementation are from the west. the west doesn't implement these technologies in similar or better ways because western norms and laws prioritize other things.
another examples: all the technology involved in china's internet firewall and surveillance systems are from the west.
so when / if you are trying to give an impression of how advanced a country / system is w.r.t the west, put your facts in perspective, it should pain a better and more accurate picture.
For all of the Resistance Democrats who have hysterically called Trump a fascist, this is what real fascism looks like. You merely critique the regulatory regime and angered government officials change the direction of your company as a warning.
I think China Central Govt still want to see the next POTUS until Ant can do an IPO. Too risk to get hurry.
Remember what happened last time when regulation is loosen for "financial innovation"? You got a global financial crisis.
Chinese comment section
JACK MA👏👏👏👏👏
Fake retirement!
This incident tells why Chinese people love CCP. It seems that CCP is stand on people's side but not giant company
lol,too stupid,taobao is heavily control by ccp.
Yeah chinese people really like mass censorship right
The issue is not political but regulatory. Not everything in China needs to be explained with a political reason
This is the Chinese way towards improvement. What seems like a slap is in fact forward strides.
Earn profits by accelerating capital circulation, and leaving financial risks to the whole society. They told everyone: The summer of consumerism will never end! Just borrow and buy buy buy. At the bankruptcy day, it’s socialism for the rich and capitalism for the poor. The rich still have a good chance to escape, and the poor definitely doomed. This is simply unfair. Unfair leads to anger, anger leads to Trump, and Trump leads to chaos. So, no thank you Jack Ma. To me, your words sounds like capital have a mouth now.
It is a vehicle for money laundry to the USA and the world.
Ma is also a communist party member.....i hope he understands what CCP did was for his good✊✊✊✊✊
Again Alibaba group took the lead for largest IPO 🥇
Almost.
They were so close
It could happen to any Chinese companies..... that right now flying higher that will come down.... look at JD, nio etc all chinese stocks are hyped up....matter of time
wsj sent quentin to trap ant in web
Arx tarpeia Capitoli proxima ... The communist party cut his wings a second time for refresh his mind.
Fame and money doesn’t make him equal of the government.
If apple has had favor of the PCC to make money by avoid certains rules, they could also do the same for alibaba. They didn’t this time for this reason. The no respect of basel agreement is a lure 🤷🏽♂️
Dude was an English teacher. I can only hear arrogance and scam from his speech
a chinese $34 Billion scam .
🤣🤣🤣🤣🤣ant
HAHAHA
#AntLifeMatters