Public opinion on Jack Ma swings wildly after China calls off Ant Group’s IPO

The domestic reputation of Jack Ma (马云 Mǎ Yún) — the Chinese billionaire and co-founder of tech giant Alibaba — has taken a precipitous tumble after China suspended the blockbuster listing of Ant Group, a financial technology company affiliated with Alibaba.

In an abrupt move that stunned financial markets on Tuesday, the Shanghai Stock Exchange suspended Ant Group’s highly anticipated initial public offering, which was poised to become the world’s biggest stock debut with a $34 billion share sale.

The financial implications of the dramatic halt were immediate and severe. Per CNBC, Alibaba, which owns roughly a third of Ant Group, saw its share price sink by over 7% in Hong Kong trading on Wednesday. Meanwhile, the net worth of Jack Ma — who is Ant Group’s “actual controller” — dropped about $3 billion, according to Bloomberg’s Billionaire Index.

However, the financial loss is not the only damage that Ma is dealing with. As soon as the news came out, Chinese social media erupted with scathing criticism of Ma. He was called a “greedy capitalist,” an “egotistical tech villain,” and a “man who thinks he’s beyond the law,” among many other labels.

Public opinion on Weibo was overwhelmingly in favor of the regulators. Many praised the authorities for taking necessary measures to protect the interests of average investors and consumers of Ant Group’s financial products. Their arguments were largely based on a widespread feeling that Ant Group — despite filling an important niche by providing micro loans to small businesses and individual borrowers — is actually a loan shark in disguise.

“The moral of the story is: Never trust a financial firm that tells you it’s merely a tech company,” a Weibo user wrote (in Chinese), while another commented, “Ant Group has been sucking the blood out of Chinese borrowers for a long time. The punishment is long overdue.”

Critics took specific aim at Huabei, a consumer credit service run by Ant Financial, questioning its role in fostering reckless spending behavior among its users. Some pointed to an advertising campaign (in Chinese) launched by Huabei this year, in which the company encouraged cash-strapped millennials to impulse buy. The message, as they argued, could lead to a host of dire consequences, such as habitual overspending and crippling debt.

Much of the anger was focused on Jack Ma himself. For a long time, Ma was perceived in China as a self-made billionaire who has inspired an entire generation of Chinese tech entrepreneurs with his business acumen and commitment to philanthropy. Compared with other tech titans in the country, Ma was famous for his self-deprecating humor and modest lifestyle.

But the tide of public opinion has turned against him in recent years, and the criticism only grew stronger this week in light of the Ant Group controversy. “It seems like Ma has become so egotistical that he thinks he’s above the laws now,” a Weibo user wrote (in Chinese).

“On what grounds does Ma think he’s entitled to critique the country’s policies? He became rich by taking advantage of the policies in the first place,” another internet user wrote (in Chinese), referencing the disparaging comments made by Ma last month about China’s regulatory environment and state banks.

Some Weibo users even called on the government to take tougher measures against Ma, saying that his capitalist beliefs were at odds with China’s Communist economy. “I hope the regulators will be serious about holding Ma accountable for his business practices one day. Socialism with Chinese characteristics is the defining feature of China, not capitalism,” a Weibo user commented (in Chinese).