Jack Ma opposes global financial rules ahead of $30 billion Ant Group IPO

Jack Ma opposes global financial rules ahead of $30 billion Ant Group IPO

Alibaba founder Jack Ma said China should plan its own route a few days before the Ant Group starts. The world’s largest corporate disclosure.

“Basel Accords is like a seniors club. . . We can’t use yesterday’s method to regulate the future.

Ma said the problem the rule was designed to solve was not related to China’s development stage. “Many problems in the world”, he said, stemmed from “talking about risk control, not just talking about development, but not thinking about opportunities for young or developing countries.”

The double listing of financial services group Ant in Hong Kong and Shanghai is expected to raise at least $30 billion, which is expected to exceed the previous record of $25.5 billion raised in 2019. Saudi Aramco, A state-owned oil company.

The Chinese group is managed by Mr. Ma, who has maintained low recognition since resigning from Alibaba’s chairmanship in 2019. Some analysts have valued Ant at $318 billion, and Mr Ma has a direct and indirect stake of 8.8%.

Ant operates a variety of fintech services, including Alipay and Sesame Credit personal credit rating system, one of the two largest mobile payment platforms in China.

There are about 460 million people in China who do not have an official bank credit history. Small and medium-sized enterprises have struggled to obtain loans from the traditional banking sector dominated by large state-owned banks that want loans to large corporations and state-owned groups.

Ma said the financial system should rely less on large banks and more on “lakes, ponds, streams, streams” ecosystems that move capital to other corners of the economy.

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He also urged the bank to move away from the “pawn shop” way of thinking about taking loan collateral to a credit rating based on big data. Basel Accords require banks internationally to maintain sufficient collateral to absorb potential losses.

Ant has expanded the Sesame Credit Scheme to give good-scoring users access to everything from shared apartments to umbrella rentals, without collateral.

However, Ant’s platform covers a variety of consumer behaviors that provide useful data, but its own experts Sesame Credit Success Predict the loan repayment rate. The company mainly stuck to traditional banking data to make lending decisions.

The central bank, People’s Bank of China, also ran into trouble when trying to set up a nationwide alternative credit rating company called Baihang. Tencent and Ant Group, the largest sources of fintech user data, have previously Refuse to share Together with Baihang.

On Sunday, local media reported that the Ant Group had bought a site worth 2.7 billion yuan to build another office building in Hangzhou, the city where the group is headquartered. This purchase is considered evidence of Ant’s planned expansion and deep pockets. Earned 18 billion yuan (2.6 billion dollars) Profit last year.

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