The abrupt suspension of Ant’s IPO, which was supposed to enter the record books this week as the world’s largest, is a stark reminder of the political risks and lack of transparency that are still prevalent in China’s capital markets. We suspect this won’t be the last move by regulators to rein in the tech giants – a crackdown was arguably overdue given their rise has reduced the state’s grip on key sectors. This risks weakening an important driver of growth but the story of the Xi era is a willingness to trade economic efficiency for greater Party control.
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