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A comment on Xi Jinping personally halted Ant's IPO after Jack Ma snubbed government leaders. Parent comment

Re:Xi Jinping personally halted Ant's IPO after Jack Ma snub... by Aperocky on Friday November 13, 2020 @06:03PM (#25088610)
The new regulations are sorely needed, previously they only covered actual banks and not self proclaimed 'fintech' companies.

Ant gets to bankroll its lending by packing loans it just made into bundles and sell it as security with yields of 5%-6%, whereas the actual interest on these loans are around 14%-18%. There's no brake on this system and they can lend out practically infinite amount of money and transfer all risks to banks/asset management firms and consumers.

There's no chance that Ant can proceed through IPO with this new regulation as the profit structure of the business has fundamentally changed.

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Re:Xi Jinping personally halted Ant's IPO after Jack Ma snub... by markus_zhang on Friday November 13, 2020 @06:59PM (#25088984)
Absolutely. My take of the events is that Ant and other major players were able to slow down the legislation all theae years (because they have a world of cash) and when it eventually managed to get out Ant tried to push through IPO as soon as possible. That was probably one of the fastest IPO.
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