China’s Central Inspection Commission is directly investigating Alibaba, Jack Ma is like sitting on a fire
Bloomberg, citing private sources, said that China’s top anti-corruption watchdog is directly participating with many other units in a recent investigation into the links between Jack Ma’s Alibaba and other companies. Chinese state company. This information increases the risk for tech mogul Jack Ma and his massive Internet empire.
Specifically, China’s Central Commission for Discipline Inspection (CCDI) is looking into Alibaba’s influence and the extent of its dealings with banks and state-owned enterprises.
CCDI was originally the body in charge of corruption issues involving high-ranking officials. The agency was reported to have participated in inquiries sent to state-owned companies in February as part of an investigation into former Hangzhou Party chief Zhou Jiangyong. Both Ant and Alibaba are headquartered in Hangzhou.
Chinese prosecutors this week accused Zhou of taking “huge” bribes, though a statement from the Supreme People’s Procuratorate did not name Ant or any other companies involved. A Bloomberg source said that although banks and state-owned enterprises have submitted their reports on any affiliation with Ant, there has been no follow-up by senior leaders on any of these. any additional action.
In January, Zhou appeared in a state media documentary claiming he had used his influence in Hangzhou, China’s tech hub, to help his brother’s businesses grow. One of those companies received investment from a company controlled by Ant, according to a local media report in August. Neither Ant nor Jack Ma have been charged with misconduct related to case.
Ant is currently unresponsive to this issue.
Shares of Alibaba fell 4.7% on the Hong Kong exchange, the highest among stocks in the Hang Seng Index.
Ant and parent company Alibaba Group Holding are both among companies seeking to placate regulators due to concerns about the growing influence of tech giants. More than a year ago, the Chinese government suspended Ant’s expected $37 billion IPO just before it was due to do so, kicking off a sweeping crackdown aimed at reining in tech conglomerates.
Guo Shuqing, chairman of the China Banking and Regulatory Commission, said this month that Beijing’s overall crackdown on Ant and 13 other Chinese fintech platforms is not over yet, despite efforts their self-inspection has completed “smoothly”.
Beijing has previously pressed Alibaba to sell off assets in its extensive media portfolio, including its major stakes in social network Weibo and streaming platform Youku. This is to limit the company’s influence on social media in China.
Before the sanctions of the government, the Chinese technology giants have suffered for more than a year. Tencent Holdings and Alibaba Group have seen their capitalization lose $1 trillion since their shares on the Hong Kong Stock Exchange plunged 13 months ago.
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