Incredible scoop by @Lingling_Wei and @jingyanghk about how Chinese President Xi Jinping killed the initial public offering of Jack Ma's Ant Group, after he felt the rapid growth of Ma's business is threatening his rule and the CCP's stability. https://www.wsj.com/articles/china-president-xi-jinping-halted-jack-ma-ant-ipo-11605203556

Mr. Ma, the country’s richest man, quoted Mr. Xi saying, “Success does not have to come from me.” As a result, the tech executive said, he wanted to help solve China’s financial problems through innovation.

Mr. Xi, who read government reports about the speech, and other senior leaders were furious, according to the officials familiar with the decision-making. Mr. Xi ordered Chinese regulators to investigate and all but shut down Ant’s initial public offering, the officials said...

... setting in motion a series of events that led to the deal’s suspension on Nov. 3.

“Xi doesn’t care about if you made any of those rich lists or not,” said a senior Chinese official. “What he cares about is what you do after you get rich, and whether you’re aligning your interests with the state’s interests.”

Chinese regulators have long wanted to rein in Ant, according to the Chinese officials with knowledge of the decision-making. The company owns a mobile payments and lifestyle app, called Alipay, that has disrupted China’s financial system.

"Regulators earlier met with strong resistance to efforts to rein in Ant from the company’s financial backers, reflecting the support Mr. Ma has had from individuals in China’s top political and business echelons, according to a person familiar with the matter."

"Mr. Xi sought to tighten financial regulations overall after the 2015 stock-market crash in China that tested the party’s firm hold on the economy. He also came to appreciate the benefits of having firms like Mr. Ma’s."

"'“It has always been a very complicated relationship between Ant and the government,” said Cornell University professor Eswar Prasad, a former head of the International Monetary Fund’s China division.

"He said the company is no longer seen as too big and influential to be reined in by government agencies. Mr. Ma’s speech in October “was a trigger for the government to act,” he said."

"For years, Mr. Ma largely managed to navigate Mr. Xi’s two seemingly contradictory goals: encouraging financial innovation and open markets to drive growth while keeping a rein on market forces to maintain control."

"This year, deteriorating relations between the U.S. and China gave Mr. Ma an opportunity to win points with the ruling party. With Washington threatening to delist Chinese companies from U.S. stock markets,...

...Beijing was eager to build up its own exchanges. Its securities regulators saw having a company such as Ant listed in both Shanghai and Hong Kong as a big endorsement of China’s markets."