Chinese President Xi Jinping personally blocked the initial public offering (IPO) of Ant Group, backed by Alibaba Group Holding Limited founder Jack Ma, the Wall Street Journal reported on Thursday, citing anonymous Chinese officials familiar with the matter.
Ma reportedly enraged government officials by criticizing the authorities for hindering the technological advancement in the country through stricter financial regulation, causing Xi to order an investigation into the Ant Group IPO, which led to its suspension. However, the regulators' alleged wish to contain the company is longstanding and due mostly to Ma's growing influence along with certain exemptions that the firm enjoys compared to commercial banks, according to the sources.
It was also noted in the report that regulators have refrained from similar moves in the past due to the support Ma was getting from important figures from the political and business groups in China.
