![]() ![]() In addition, a few months later, the company said it would participate in common prosperity initiatives by investing $15.50 billion through 2025. Be that as it may, this was only the first hiccup.įollowing the suspension of the IPO, Chinese regulators fined the country's major big tech companies for antitrust violations: in 2021 Alibaba was fined $2.80 billion. Overall, after these three years, Ant Group comes out weakened, and indirectly so does Alibaba. Thus, no shareholder, alone or in agreement with other parties, will have control. The ownership structure has been completely turned upside down: Jack Ma owned 53.46% of the voting shares, today only 6.20%.Ant Group was fined $985 million, one of the highest fines ever imposed by Chinese regulators.After years of turbulence, the worst seems to be behind us, but not without consequences: According to the authorities' statements, the reason was that Ant Group's structure did not reflect the anti-monopoly rules. However, when everything seemed to be going right, some statements by Jack Ma about the Chinese financial system caught the attention of the Chinese authorities and after a few days, the IPO was cancelled. Alibaba owns 33% of the group, so it had every interest in making the biggest IPO of all time go through. At the time, it was pretty much done for the IPO of Ant Group, which is the company that owns the world's largest mobile payment platform, Alipay. In these three years, virtually everything has happened.Īt the end of October 2020, there was great optimism around Alibaba and it was steadily trading around $280-$300 per share. Contextīefore assessing the current situation, I think it is useful to give a brief recap of what has happened so far since November 2020, which is when Alibaba's meltdown began. As you might have guessed, I am talking about the much-discussed Alibaba ( NYSE: BABA ). It is exactly this aspect that I want to leverage in this article since the issues of this company are not about the business itself but about the country in which it resides. Unfortunately, it is located on the other side of the world, in Hangzhou, China. Probably, if this company was headquartered in New York now you would all run to buy it. ![]()
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