On November 3, Chinese regulators suspended the initial public offering of Ant Group, the parent company of Alipay, which belongs to Jack Ma.
On November 5, a grandiose double placement of Ant Group in Shanghai and Hong Kong was supposed, the excitement of investors around the world could attract up to $ 35 billion. However, then everything was postponed. In a posting on the exchange’s website, the company announced that after a conversation between management and Chinese regulators and changes in legislation, reporting problems arose.
Why did this placement fail and how will it affect the markets? Leading trader Valdis Wooldorfs argues:
“There is a simple and complex answer to this event. Simple – the application was not filled out correctly, problems with the initial filling of documents. Difficult – since this is the largest IPO since the recently released Saudi Aramco, there is increased attention to it. First, let’s figure out what kind of company it is and what it does. So this is Fintech with a pinch of cryptography from a well-known and respected person in Asia. Here, attentive readers should have a persistent “deja vu”, but not so long ago Pavel Durov, no less known to us, tried to implement the same idea, only he communicated with the US regulators, but the result was the same. Why? It’s simple: what these companies are claiming is the most profitable and most regulated area.
If we only give these projects a run now, then all banks + companies like Visa and Mastercard will lose their relevance, since they all work on outdated principles.
And if we assume that the system will also issue a certain amount of domestic currency (and how could it be without it), then this casts doubt on the largest Central Banks of advanced countries, which hold a monopoly on the issue of money and the resulting income through seigniorage up to 99, 99%, and this is pure power, and not one country and not a single leader was destroyed for it, so startups like AntGroup will have a spoke in their wheels. “
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