It is not wrong to think, that the hardships of today’s global situation will not hold the technological field back. In fact, the “big fish” are maintaining the high-speed momentum, and their plans exceed the short-term future. As we can find out in Andy Samu’s piece, published on the Disruption Banking website, Chinese Ant Group is one of the representatives of that mindset, as the company planned to raise its value by $35 billion upon its debut in Shanghai and Hong Kong.
The Ant Group’s value was $250 billion even before that. The impressive result is not a surprise as the entity owns Alipay, one of the biggest Chinese mobile payment services. Their steps in fact, have been inspired by the path marked by TESLA or Nasdaq – other firms with extraordinary reach.
The growing relationship between China and the US
In the Andy Samu’sarticle we can read an extensive analysis of the People’s Republic of China actions and regulations. Dr. Fang Xinghai, the Vice Chairman of the China Securities Regulatory Commission (CSRC), has been featuring in a series of the Commission’s statements, expressing sentiments to the foreign financial institutions.
Before that, in August, Dr. Xinghai would speak on how his organization is reaching out to the US, Public Company Accounting Oversight Board (PCAOB) in particular. He also insisted that the Chinese and American nations could only benefit from tightening their relationship. The decoupling seems to be diminishing, as in September, Citigroup became the first US bank to be “Approved for Business” by Chinese authorities.
Although first, Citigroup is not the only US firm to get the People’s Bank of China approval. Among others, we can mention BlackRock and American Express. Later, Dr. Fang Xinghai spoke at 2020 China International Annual Forum and told of their plans to allow in more foreign investors, as only 4,69% of Chinese stocks is owned by them.
The Chinese market is indeed a boastful one, and as the current statistics show, it is a great environment for the investors to grow in. The China Ant Group IPO is one of a lot of examples of wise and profitable development in this market, and the progress of Chinese regulations as well as control of it will only be additional incentive for the foreign investors.
You can read more on how the Chinese are tightening their regulations, and allow fewer and fewer abnormalities to sneak under the radar in the abovementioned Andy Samu’s piece.
Is it possible to reiterate the $35 bn IPO of China Ant Group?
Unfortunately, as Andy Samu implies, several companies like Macquarie Group Ltd., Sanford C. Bernstein and Morgan Stanley havealready expressedtheirworry that the abundant gains coming from Asian market smight be soon terminated. The Disruption Banking callsthat “momentum exhaustion” and suggests that all entities – Ant Group in cluded – will be no exception.
As far the politics go, it might be yet another layer of this recent romance of US and Chinese banks. Not long ago the Chinese authorities announces the creation of “UnreliableEntities List” which is supposed to be an answer to Chinese firms being ‘punished’ in America. Both sides – USA and China – explain their actions as “national security” matters. For more information regarding the topic, visit the Disruption Banking piece: https://disruptionbanking.com/2020/09/29/approved-for-business-in-china-and-ant-groups-35-billion-ipo/