'You Can Take Any Of The Platforms Ant Has,' Jack Ma Told Beijing Amid IPO Scrutiny: WSJ
Jack Ma, co-founder of Alibaba Group Holding Ltd (NYSE: BABA), offered to give Beijing portions of his financial technology company Ant Group to mend its relationship with the Chinese government, the Wall Street Journal reported on Sunday.
What Happened: The previously unreported offer was made by Ma on Nov. 2 when questioned by Chinese regulators and the central bank ahead of Mega Ant's IPO.
"You can use any of the platforms that Ant has as long as the country needs it," the Chinese billionaire is said to have told the regulatory authorities.
Why it matters: China's President Xi Jinping has personally asked regulators to investigate the risks of Ant's $ 34 billion IPO and shut it down, the Journal reported last month.
See also: Why China slashed Jack Ma's Ant IPO hopes, experts explain
China's financial regulators reportedly have not taken a decision on Ma's offer, but a contemplated plan could subject Ant to stricter capital and leverage requirements.
Alibaba and another Chinese internet leviathan Tencent Holdings Ltd (OTC: TCEHY) were fined 500,000 RMB ($ 76,464.29) each earlier this month for failing to properly report past deals.
"The chances of nationalizing at least parts of the company are not zero," a Beijing-based government adviser said, according to the Journal.
Price Action: Alibaba shares closed at $ 260 on Friday, up nearly 1.7%.
Photo courtesy of the World Economic Forum via Wikimedia
See more from Benzinga
Click here for Benzinga option trades
Alibaba ropes in Gucci to attract brand conscious Chinese buyers
Alibaba's ant says "look in the mirror" after the IPO fallout
© 2020 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.
In this article
Mention your own website in this post for Advertisement
Despite The Falcon and the Winter Soldier's admirable message, the finale was superheroes-by-numbers
The next generation of coronavirus vaccines won't come as quickly
GOP Gov. Candidate Amanda Chase Says Derek Chauvin Conviction ‘Makes Me Sick'
14% of Americans Own Crypto Right Now – Here’s Who’s Actually Doing It Right
Dominic Cooper Explains This Odd Photo
Facebook taking ‘very aggressive measures” to remove vaccine misinformation: Carolyn Everson