China and America’s relationship complicates, Chinese companies at risks
U.S.-China tension has become the main concern for a lot of firms, including Ant Group. While the future of the clash is still uncertain, more so with the ongoing presidential election, Ant Group finally decided to go home.
A lot of companies have become victims of the U.S. and China’s relationship. TikTok and WeChat are some of the exact proofs. Not only that, CNN reports that Chinese firms are also receiving different treatments on Wall Street. Nasdaq has reportedly kicked out Luckin Coffee due to major accounting irregularities. It is as if the whole U.S. is trying to limit Beijing from accessing America’s capital markets.
Jack Ma brings Ant Group home
Upon the issue, Xiaomeng Lu, senior geotechnology analyst at Eurasia Group told CNN‘s representative that, “the Chinese government is more than happy to host a national champion on one of its major capital markets domestically at a time when many Chinese companies are facing greater political headwinds overseas.”
Lu also reportedly has been trying to convince China‘s top tech companies to go back home. “This is a difficult time, and we have your back,” he said.
Ant Group’s final decision fell on Hong Kong’s Stock Exchange and Shanghai’s Star Market. Previously, Lu has predicted the pet project of Chinese President Xi Jinping, the Star Market, will boost the company’s legitimacy and Value. A massive IPO will also amplify the Shanghai Stock Exchange next to the Tokyo Stock Exchange.