Chinese President Xi Jinping has announced that his government would set up a new stock exchange in the country’s capital, which would let the Chinese Government have more influence in the world of business and finance. According to reports, Xi Jinping made a vague announcement of the new Beijing-based stock exchange at an international trade fair without revealing the timeline of its establishment. China already has two stock exchanges which are located in Shanghai and Shenzhen, away from Beijing.
The Communist regime is throwing its weight behind the new stock exchange to bring in more resources and investment for Chinese companies because fundraising options in the US have been dwindling, given the evolving situation between the US and China in the past few years. Chinese companies have been facing regulatory hurdles while raising money in the United States. The US regulators have stepped up scrutiny on Chinese IPOs and required stricter disclosures about potential risks.
Moreover, the decision of a new stock market also comes out of apprehensions of the Xi Jinping Government that Chinese tech firms, who are raising money overseas, may give access to sensitive data to foreign governments. Although the Xi Jinping-led regime is planning a Beijing based stock market to bring in investment for the tech companies, it has for the past year led a serious crackdown on several large-scale industries which have been instrumental in the flourishing of the economy and bringing ‘sort of’ an industrial revolution in the country.
Crackdown by Chinese communist regime
The communist regime has led a crackdown on various subjects ranging from video games, celebrity culture and online fan followings, for what the regime claims to be a bad influence on the country’s youth. Media houses, billionaires and several other individuals who have been critical of the Xi Jinping government in the past have either been arrested or have disappeared from public light.
The autocracy of the regime has led to the likes of Alibaba founder Jack Ma and several others, living in oblivion who were once the messiahs of the tech industry, who substantially contributed to the Chinese economy. Chinese billionaire Jack Ma who was said to be the richest man in China has recorded a steep fall in his fortune within a year, thanks to the communist regime’s clampdown.
It is worth mentioning that Jack Ma abruptly came under fire from the Chinese regime after he spoke against the financial regulators in a public speech in October last year. Since then, his initial public offering by Ant Group Co has been put on hold, and he has largely stayed out of public view, amid larger fears that he has been abducted or is under some kind of house arrest. It is also said that Jack Ma was extremely popular outside China and was well-known for being a face of the Chinese internet revolution, something that President Xi Jinping reportedly did not take kindly to.
Food delivery firm Meituan’s CEO Wang Xing has also suffered a similar fate after he posted a 1,100-years-old poem that went against the ideology of the Chinese Government. Ride-hail company Didi Chuxing, which once did more trips than Uber in China and later spread to Latin America and Africa, has also suffered the crackdown of Xi Jinping’s government just two days after it got listed in New York Stock Exchange raising $4.4 billion.