Posted on 11/11/2020 5:27:55 AM PST by edwinland
Ray Dalio, founder of Bridgewater Associates, expressed support on Wednesday for China's abrupt decision to suspend Ant Group's record $37 billion listing, citing the need to curb risks from financial innovation.
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Earlier this month, Chinese regulators shocked global investors by suspending the Shanghai-Hong Kong dual-listing by fintech giant Ant, just days before what would have been the world's largest stock market debut.
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Dalio brushed aside concerns that the surprise move could dent investor confidence, arguing there's a risk of being too loose on innovation.
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"Ant is a whole new concept in terms of banking, and almost could replace or threaten the banking system in China. And it hasn't yet been properly established in terms of regulatory review and the like," Dalio told the China Town Hall 2020.
"And it's important to be clear that what we have in China is state capitalism. So the state is going to control those things," said Dalio, describing Chinese regulators as "reasonable, caring, and highly-informed."
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Dalio, who first visited China 36 years ago, said "people have accused me of being biased, naive, and in some cases unpatriotic. I think I'm just being objective."
(Excerpt) Read more at finance.yahoo.com ...
Ant financial was created in 2014 and has spent 6 years growing into the world's biggest fintech. They were a few days out from what would have been the world's biggest IPO and then Jack Ma "made disparaging comments about China's regulatory environment and state banks" (quote from NPR) and four Chinese regulators suddenly swooped in to cancel the IPO.
So if Dalio is to be believed, four separate "reasonable, caring, and highly-informed" regulators were going to allow the IPO and then they all suddenly realized they hadn't completed their "regulatory review and the like" the morning after Jack Ma criticized the government.
This is how your betters think. This is just a little drop in the bucket of the ocean that Donald Trump was holding back.
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