has come under scrutiny for its relentless working schedules, has given up his roles as chairman and CEO and donated shares worth billions of dollars. Ma, who criticized Chinese financial regulators in his last public speech before Ant’s IPO was abruptly suspended, has since resurfaced only a handful of times in carefully choreographed appearances.Ĭolin Huang, whose e-commerce giant Pinduoduo Inc. One big lesson from the crackdown: “Don’t get bigger than the government," Zeman said, shortly after attending the Communist Party’s 100th anniversary celebration in Beijing on July 1.ĭidi notwithstanding, the message appears to be getting through. “Some of the tech companies became larger than life," said Allan Zeman, a property tycoon who gave up his Canadian passport to become a naturalized citizen of China in 2008. The new playbook for China’s ultra-rich calls for more deference to the Communist Party, more charitable donations and more focus on the wellbeing of rank-and-file employees, even if it hurts the bottom line. Outsized public personas - long seen as an asset for tech-company founders - now look like a liability. ![]() Gone are the days when tycoons like Ma could confidently bend the rules to supercharge their companies’ growth and challenge entrenched interests like state-owned banks. The upshot is a new era for the country’s billionaires and the investors who back them. ![]() At a major speech on his economic plans in October, President Xi Jinping acknowledged that the country’s development was “unbalanced" and said “common prosperity" should be the ultimate goal. As one government official familiar with the leadership’s thinking described it, Beijing wants to prevent its billionaires from becoming a force as strong as the family-run chaebol that dominate South Korea’s economy and many aspects of its politics.Īdding to Beijing’s resolve is the Chinese public’s growing concern over rising inequality. They include concerns about anticompetitive behavior in the tech industry, risks to financial stability from lightly regulated lending platforms and the rapid proliferation of sensitive personal information in the hands of large corporations.īut another undercurrent running through many of the government’s latest initiatives is a not-so-secret desire to rein in the power of China’s tycoons, some of whom have amassed an enormous amount of influence over the $14 trillion economy. ![]() In the latest salvo, regulators unveiled new draft rules on Saturday that would require nearly all domestic companies to undergo a cybersecurity review before listing in a foreign country.īeijing’s motivations for the crackdown are varied. ![]() Policy makers are tightening regulations on some of the most important facets of Asia’s largest economy, from financial services to internet platforms and the data that underpins most big businesses in modern China. was forced to pull its blockbuster initial public offering at the last minute. Didi’s stock has plunged 14% since its June 30 debut on the New York Stock Exchange, slashing the wealth of the company’s co-founders by almost $800 million.īehind the losses is a crackdown that has only intensified since November, when Ma’s Ant Group Co. Shares of their flagship companies sank by an average 13% during the period, the first time in at least six years they’ve recorded declines when the broader Chinese equity market was rising. The age of unfettered gains for China’s ultra-rich now appears to be coming to an abrupt end.Įven as the world’s 10 wealthiest people added $209 billion to their net worth in the first half of 2021, China’s richest tycoons in the Bloomberg Billionaires Index saw their combined fortunes shrink by $16 billion.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |