Political opponents of Chinese President Xi Jinping could benefit from the IPO of Jack Ma’s fintech company Ant Group.

RBC reports that The Wall Street Journal writes that with reference to sources among Chinese officials and state advisors.

According to these sources, a few weeks prior to the listing, Chinese government conducted an investigation and found that the IPO Ant prospect concealed several co-owners of the company. Some of them were political opponents of Chinese President and his close circle. They own Ant through a chain of legal entities.



If IPO went through, these opponents – the children of “the old elite” – would receive billions of dollars. Xi Jinping, known for his demonstrative fight against corruption and tough stance against the luxurious lifestyle of the elite, decided that such outcome would be unacceptable both politically and ideologically, said The Wall Street Journal’s sources.

Ant Group representatives deny the accusations and insist that the shareholder capital’s structure was fully presented in the prospect of the listing.



Last year, Ant Group planned to hold the largest listing in the history of IPO, which would value at over USD 34 billion. However, it was paused two days before the listing on the exchange. Ant Group said it was due to the change in China’s regulations for fintech companies.

The media has also reported that IPO might have been canceled because of Jack Ma’s criticism against the Chinese officials. WSJ writes that Alibaba founder has stated that “there is no system in China’s finances” and the existing legislation is holding back innovation in that sector.

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