[Asia Economy Reporter Kwon Jae-hee] Chinese authorities are intensifying their crackdown on Ma Yun, the actual controller of fintech company Ant Group and founder of Alibaba.
According to the Wall Street Journal (WSJ) on the 27th (local time), the Chinese government has been conducting a thorough investigation since early this year into the process by which Ant Group received approval for its initial public offering (IPO) last year.
In China, obtaining IPO approval usually takes a considerable amount of time, but Ant Group's IPO approval was granted relatively quickly. For this reason, Chinese authorities are expected to investigate whether any officials exerted undue influence during the process and examine their connections with Ma Yun.
Previously, Ant Group was scheduled to conduct the largest IPO in history on the Hong Kong and Shanghai stock exchanges in November last year, but the plan was halted after Ma Yun publicly criticized the authorities.
In particular, WSJ highlighted whether Li Qiang, the Shanghai Communist Party Secretary who has influence over the Shanghai Stock Exchange, will be subject to investigation. Li, regarded as a rising star within the Chinese Communist Party, is known to have a close relationship with Ma Yun.
Various Chinese fund officials who attempted to acquire shares in Ant Group are also under investigation. In effect, political and business figures who were friendly to Ma Yun have all become targets of Chinese authorities.
It is reported that Chinese authorities have taken measures to prevent Ma Yun from leaving China until the investigation is completed.
WSJ analyzed that "this investigation by Chinese authorities is increasing uncertainty about the future of Ant Group and Ma Yun."
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