Jack is Back - Are the rumours about his disappearance true or false? Pascal's China Lens week 31

Title: Jack is Back
Website: https://www.pascalcoppens.com/

CONTENT. This video explains why Jack was laying low. I talk about what lead to his disappearance, why the rumours started and what a public figure like Jack Ma should do in a country that is ruled by the Communist Party.

TRANSCRIPT
So Jack is back.
Jack Ma reappeared suddenly after 88 days at a teacher awards ceremony.
There are about three million teachers in the rural areas and he talked to many of them.
He was suddenly back in public and everybody was wondering where did Jack Ma leave for three months or 88 days.
Everybody was so happy to have him back. To understand that we have to go back in time.
If we go back to 2020 in September then everybody was looking forward to the Ant IPO,
an IPO that would raise 35 billion US dollars.
The biggest Fintech company in the world with the biggest IPO in the world would happen in China, Shanghai and Hong Kong.
It was amazing, I made a video about Ant Financial back in September,
and you can see how big this Ant actually became and how important that IPO was for everyone
but then it got cancelled and it got halted.
The IPO wouldn't happen and that was just two days before the IPO.
The regulators had decided 'we're not going to make this happen'
because Alibaba or Ant Financial in this case,
part of Alibaba was not abiding to the regulations and didn't have enough cash in the bank to actually support the loans
that they were giving and many many other regulations that they didn't follow.
Now one of the reasons that many people say that this was stopped so late in the game is
because Jack Ma himself was actually giving a speech on October the 24th at the Bund Summit
where he was bashing on these regulators.
He said a couple of very interesting things which makes it very understandable why these regulators were quite upset.
First of all he said that China lacked a proper financial system.
So China shouldn't follow the Basel Accords which the financial industry is following
and he called them a "club for the elderly", these Basel regulators.
So why is China following that?
He says that these traditional bankers have a pawn shop mentality.
So he was telling these people that they're old guys,
they're like the old world and we're the new world, that's basically his story.
The other thing is that he was talking about innovation
and he says that innovation is about taking risks and it comes at a price if you want to succeed.
But he said that China also doesn't have enough experts in the regulators to apply the policies
that understand the new innovation needs of the markets.
So the development of the market is going faster than the development of the regulators
and he said that it is no use to put old regulation in a new market.
They weren't too happy with that either.
The third thing that happened is he was talking about the internet industry
and internet finance or the Fintech world like we often say,
is a controlling force and people want credit, they want loans and this is a new way of doing business.
It's much stronger than these supervisors and these market regulations can actually understand
And so he was advising the regulators to minimize the regulations and to maximize the utilization of this industry,
the market forces and the business endeavors.
He was basically saying that China needs credit, China needs loans,
China needs lots of things to make the economy grow and make consumption happen.
So don't regulate it otherwise it's not going to happen and your GDP is not going to grow.
And so China is dependent on companies like Ant,
not something the regulators wanted to hear.
Now if you look at the reality,
out of the 10 biggest banks in the world, 5 of them are Chinese
so telling these regulators and these banks, 'you don't get it' is kind of not the right message.
On top of that in 2008 we had the financial crisis.
In 2018 there was the peer-to-peer loans which completely folded
and it was a big disaster where millions of people lost money because of Ponzi schemes.
I mean in both 2008 and 2018,
it was about some people wanting to get really rich and a lot of people just not making ends meet
and having bankruptcy as a result.
China didn't want another Ponzi scheme
and they were worried of Ant Financial together with Alibaba being more than 10% of the GDP annually of China
that this would create a force that they wouldn't be able to control anymore.
Not something they wanted.
...

KEYWORDS

Pascal Coppens, China, innovation, trends, keynote, speaker, public speaker, Jack Ma, Jack disappearance, Jack is back, Jack Ma's return, Ant Group IPO

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Видео Jack is Back - Are the rumours about his disappearance true or false? Pascal's China Lens week 31 канала Pascal Coppens