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Chinese e-commerce giant Alibaba Group lost $ 60 billion of its stock market value in one day due to the fallout from the sudden decision, which was first announced to suspend the offering of shares in subsidiary Ant Group. of the group, with a view to its IPO on the two Shanghai stock exchanges. And Hong Kong.
And this is due to legal issues with the Chinese government. According to what was reported by “Twitter”, shares of “Alibaba” fell 8% after the decision was announced. “Ali Baba” owns a stake in “Ant Group”, estimated at around a third.
At the last moment, China halted the largest public offering on the stock market in history, thwarting billionaire Jack Ma’s hopes of invading the e-finance industry and causing e-commerce giant Alibaba’s shares to decline. Group he had founded. Beijing believes that the new conditions imposed on Ant Group after the offer will negatively affect its results, which will limit future profits promised to shareholders.
Fears are also being raised in China about the enormous power and excessive influence of the Chinese group after the IPO process, which disrupted this historic proposition. Financial size and influence, which is unacceptable in China, he said.
Ant Group, the world’s largest electronic payments company, was due to make a public offering on the Shanghai and Hong Kong stock exchanges at an unprecedented value for an IPO estimated at $ 34.4 billion. But less than 48 hours before the date expected by thousands of shareholders, the Chinese regime interrupted the process.
In light of the raging trade and technology conflict with the United States under President Donald Trump, listing Alibaba’s shares on Wall Street has been seen as a challenge for Washington. The Ant Group, which has approximately 731 million monthly active users on its Alipay electronic payment platform, has contributed to a revolution in payment commerce and services in China, by enabling the use of mobile phones to pay. daily shopping.
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