Friday, June 18, 2021

China ruined Jack Ma’s business empire, took over assets: Report

Mr Ma’s misfortunes started in November after he spoke up against the country’s regulatory approach to the finance sector.

• June 9, 2021
Jack Ma
Jack Ma (Credit: Yahoo News)

Latest reports have tied the misfortune of Jack Ma’s business empire to actions and policies of the Chinese government.

Mr Ma, the co-founder of Alibaba Group Holding Ltd, had since 2020 been in the middle of the Chinese government’s clampdown that targeted his e-commerce company and its affiliate Ant group.

Forbes in a report detailed that Mr Ma business empire’s current worth was half what it was nine months ago after the Chinese government took over some of his assets and introduced unfavourable policies and fines.

The American business magazine further revealed that the country is still doling out some of the most ‘lucrative slices’ of Mr Ma’s business to China’s most corrupt and financially shaky companies.

“The Ma empire is worth half what it was nine months ago.  The process is not over. Beijing is now doling out some of the most lucrative slices of Ma’s business to new ‘partners’ of its choosing, including one of the most corrupt and financially shaky companies in all of China,” the report read.

His misfortunes started in November after he spoke up against the country’s regulatory approach to the finance sector.

Mr Ma chided the country’s financial regulators for being of the habit of minimising risk, he also accused Chinese banks of acting like pawnshops, lending only to those who could present collateral. 

His comments triggered the Chinese government to squash Ant group’s $35 billion initial public offering.

In April, the Chinese government slammed a $2.8 billion fine on Mr Ma’s Alibaba for an alleged antitrust violation.

With Ant’s planned $35 billion share sale, Mr Ma would have climbed the wealth rankings.

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