London Daily

Focus on the big picture.
Monday, Jun 30, 2025

Jack Ma urges financial regulation reform on eve of Ant Group IPO

Jack Ma urges financial regulation reform on eve of Ant Group IPO

Jack Ma urges financial regulation reform on eve of Ant Group’s ‘biggest IPO in history’

Jack Ma, the Chinese billionaire behind Alibaba and Ant Group, has questioned whether international financial regulations are suitable for the Chinese economy and suggested traditional banks should change their “pawnshop” operating model.

Ma, who has retired from all his corporate roles but remains the face of Alibaba and Ant, told a financial forum in Shanghai that Beijing’s emphasis on “preventing systemic financial risks” may have missed the point, while the existing regulatory framework, known as the Basel Accords, may not be the right “medicine” for China’s financial sector.

Ma was speaking hours after the pricing for Ant Group’s initial public offering in Hong Kong and Shanghai – billed as the “biggest in history” – was determined.

He said the share price had been decided on Friday but did not disclose the figure.

However, the South China Morning Post, which is owned by Alibaba, has previously reported that the size of the IPO could be between US$35 billion and US$45 billion.

Ma told the Bund Summit, an event attended by hundreds of bankers and regulators in Shanghai, that the Ant Group offering was a “miracle” because it was the first time a big tech company had set prices outside New York.

He said: “We didn’t dare to think about it five years ago, or even three years ago. But the miracle just happened.”

He also questioned whether traditional financial regulations are in need of an overhaul.

Ma said the Basel Accords, which use a labyrinth of indicators to control risk and are used by regulators worldwide, had been designed by “a club of old people” and questioned whether China needed to follow them religiously.

He argued that China’s biggest problem was the lack of a functioning financial system and compared them to giving a patient the wrong medicine.

“The symptoms of Alzheimer’s and polio may look similar, but they are two completely different diseases. If a child takes Alzheimer’s medicine to cure polio, there will be many new problems,” Ma said.

“The Basel Accords are intended to treat diseases of an ageing banking system, it is a medicine for old people … but China’s financial system is still in its youth.”


Ant Group’s IPO was described as a “miracle”.


Ma said China’s financial system is still dominated by big state banks, and it is in need of other technology-driven channels to provide funds efficiently in a vast economic system.

“Big banks are like big rivers … but we need ponds, creeks and small channels in the system. Without these in an ecosystem, floods and droughts will always happen here and there,” he said.

Ma said conventional banking businesses in China were run like “pawn shops” as banks always demand sufficient collateral to make loans. But in the future, lending decisions should be decided by big data and credit records.

He said the mainstream banking system had been designed for an age of industrial development, but in future it would need an inclusive, sustainable and green system that used new technologies such as big data, cloud computing as well as blockchain.

“Innovation always comes with a risk, there will be no risk-free innovation … the biggest risk is that you try to minimise the risk to zero,” Ma said.

He also said there was too much red tape involved in Chinese financial regulation.

“Good innovations are not afraid of supervision, but they do fear outdated supervision. We cannot manage an airport in the same way as we manage a railway station. We cannot manage the future with the same old approach of yesterday,” Ma said. “Today the world, especially China, needs a lot of policy experts, but not experts in red-tape.”


Alipay and other financial services offered by Ant Group have been hit with traditional regulatory requirements, such as licensing and capital adequacy requirements, and the way financial regulations evolve will be a major factor in determining its future.

Ma said Ant Group has been trying to promote “green, sustainable and inclusive finance” over the last 16 years.

“If you see green, sustainable and inclusive finance as a mistake, we are willing to make that mistake again and again,” he added.

Newsletter

Related Articles

0:00
0:00
Close
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
×