{"id":67949,"date":"2020-11-05T01:10:09","date_gmt":"2020-11-05T01:10:09","guid":{"rendered":"https:\/\/www.thefastfashion.com\/?p=67949"},"modified":"2020-11-05T01:10:09","modified_gmt":"2020-11-05T01:10:09","slug":"day-jack-ma-became-ray-dalios-nightmare","status":"publish","type":"post","link":"https:\/\/www.thefastfashion.com\/?p=67949","title":{"rendered":"The Day Jack Ma Became Ray Dalio’s Nightmare"},"content":{"rendered":"

Not because America\u2019s election changes anything about its hawkish stance toward Beijing \u2014 that\u2019s bipartisan \u2014 but because China lost a golden investment opportunity by shooting itself in the foot.<\/p>\n

Looking purely at the numbers, China is in a sweet spot right now. Its bonds are attractive, as the yield differential with U.S. Treasuries hovers near a five-year high. Beijing\u2019s virus-containment strategy is working, and the economy has bounced back. Meanwhile, President Xi Jinping\u2019s latest five-year economic blueprint, which favors innovation and domestic consumption, is a win for tech companies \u2014 exactly the kind of growth stocks investors love.<\/p>\n

<\/div>\n

Foreigners have been buying the China story this year, even as President Donald Trump threatened to sanction and delist mainland companies. They are crowding into Beijing\u2019s sovereign issues at a record pace, promising to overtake domestic city commercial banks as the second largest purchasing bloc. Global investors need to have \u201ca significant portion\u201d of their portfolios in Chinese assets, both for diversification and short-term tactical gains, said Bridgewater Associates LP founder Ray Dalio.<\/p>\n

\u00a0<\/div>\n

The Shanghai Stock Exchange\u2019s surprise suspension of Ant Group\u2019s record-breaking initial public offering Tuesday night changed the landscape entirely. Two weeks earlier, the company\u2019s billionaire founder Jack Ma made a sensational speech, saying China\u2019s financial system and regulatory framework are broken. On Monday, Beijing\u2019s top financial watchdogs summoned Ma and dressed him down. Then they issued new draft rules to rein in Ant\u2019s lucrative consumer loan business.<\/p>\n

It\u2019s episodes like this that remind us how capricious and thin-skinned Beijing\u2019s policy makers can be. Regulators have been debating whether to allow online microlenders to act as simple matchmakers (rather than traditional lenders, which require capital buffers), for a good two years. Why the sudden change of heart two days before Ant\u2019s much-anticipated trading debut? The fintech giant had already raised at least $34.5 billion from its dual listing in Hong Kong and Shanghai. Now, it has to return billions of dollars to its IPO subscribers.<\/p>\n

Adv<\/em>.<\/strong><\/p>\r\n\r\n