Why Ants group , Alibaba and China internet commerce Bad for China, and Xi cracking down


nastya1

Junior Member
Registered Member
Ants IPO got hauled by government and Jack ma got summoned. Xi is not just cracking on Ants and Alibaba but also all other Chinese internet companies like tencent , Baidu.

Everything is online now and as consequences all the malls and stores are shutting down. Everywhere are emptied like ghost town. This is very bad development for average people. All the money is going to the internet commerce companies.

China now is focusing on semiconductor equipment and material development so the country can be free from US sanctioning and western influence once and all. Yet those internet commerce has attracted all the money in the stock market, attracted all the bright talents from universities and take away average people livelihood , shutting down shops and malls.

This is very uneven development. Pose as direct national danger.

Ants group is using financial tricks to do all this and could lead to huge financial disaster.
Lending to young people who graduated with little money at high interest and then sell those loans as assets to banks. Banks doesn't know the details and they bought them and absorbed all the risk. Ants group act as middle man with little risk. This is exactly what happened to US financial meltdown in 2009. Selling loan directives.

President Xi is cracking down on them, recently all Chinese internet companies dropped huge at stock market.

It's about time.
Internet commerce is easy money , taking away all the talents , money and with little focus on fundamental science which should be the bread and butter for the country. And this leads to bad development model.
 

vincent

Senior Member
You are clueless on the reason for the Ant IPO halt. Ant is doing what the American banks were doing before the 2008 financial crisis. It gets money from banks at max 3-4%, pass that money to consumers at 17% annualize, package those loans together and sell them on the financial market, take the money and loan them out again, rinse and repeat. This game creates a huge systematic risk for the entire financial system
 

vincent

Senior Member
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“Xi doesn’t care about if you made any of those rich lists or not,” said a senior Chinese official. “What he cares about is what you do after you get rich, and whether you’re aligning your interests with the state’s interests.”

But trouble was brewing with banking regulators, who were growing concerned about the risk banks were taking on by lending to Ant’s customers online. Since the summer, a spate of government regulations, guidelines and notices were rolled out to contain potential risks from the growth of digital finance and microlending.
 

nastya1

Junior Member
Registered Member
You are clueless on the reason for the Ant IPO halt. Ant is doing what the American banks were doing before the 2008 financial crisis. It gets money from banks at max 3-4%, pass that money to consumers at 17% annualize, package those loans together and sell them on the financial market, take the money and loan them out again, rinse and repeat. This game creates a huge systematic risk for the entire financial system
Aren't you regurgitate what I said above?
 

nastya1

Junior Member
Registered Member
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“Xi doesn’t care about if you made any of those rich lists or not,” said a senior Chinese official. “What he cares about is what you do after you get rich, and whether you’re aligning your interests with the state’s interests.”

But trouble was brewing with banking regulators, who were growing concerned about the risk banks were taking on by lending to Ant’s customers online. Since the summer, a spate of government regulations, guidelines and notices were rolled out to contain potential risks from the growth of digital finance and microlending.
Not just ants but the whole internet commerce taking over.
 

nastya1

Junior Member
Registered Member
the crack down has nothing to do with ecommerce
Check out what happen to tencent, Baidu and JD stock for past few days

China just pass the antimonopoly law which target all internet commerce companies.

Ants IPO is just tip of iceberg
 

nastya1

Junior Member
Registered Member
Tencent has some similar financial scheme i think
I applaud crack down on all internet commerce companies. They take away all the resources.
China should focus on fundamental science and semiconductor equipment and materials.
 

Phead128

Junior Member
Stocks are not indicative of health of economy.

Shanghai stock exchange collapsed -60% during 2008 financial crisis while China GDP grew 9.8% that year.

US stock exchange were hitting record highs with the country lockdown and 40 million unemployed and 100,000 deaths, most in the world.

Stocks go up and down in the short term largely on news cycle and emotional whim, or in recent US case, govt printing money.

Avoiding excessive de-regulation that lead to 2008 financial crisis is more important than short term profit or stock performance.
 

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