>> WELCOME BACK TO CHEDDAR'S
OPENING BELL EVERYONE AT
CHINESE REGULATORS SHOCKING
POTENTIAL INVESTORS ON TUESDAY
AFTER SUSPENDING
AND GROUPS, 34 BILLION DOLLAR
IPO THE BIGGEST PLANNED
OFFERING IN HISTORY AND FOR
MORE ON THIS WE'RE JOINED BY
HOWARD YU PROFESSOR AT I AND D
BUSINESS SCHOOL IN SWITZERLAND
AND AUTHOR
LEAP HOW TO THRIVE IN A WORLD
WHERE EVERYTHING CAN BE COPIED,
HOWARD IT'S GOOD TO SEE IT
TODAY AT FOUNDER JACK MA HAS
BEEN SOUNDING I THESE
REGULATORS PUSHING BACK.
>> WELL YOU KNOW THERE ARE 2
WAY UP INTO PUTTING THE CURRENT
SITUATION, ONE WAY IS YOU KNOW,
JACK YOU'RE CONTROLLING OWNER
SOFTBANK GROUP
HE WAS NOW IN SHANGHAI ABOUT A
MONTH AGO AND COMPLAINING THE
CHINESE REGULATOR APPLYING THE
WRONG POLICY TO RECTAL A
CHINESE SPIN. NOW THAT DOESN'T
WASH WELL
WITH FUEL STAKEHOLDERS BUT
FUNDAMENTALLY WE COULD LOOK AT
WHERE IS DIRECTION GOING SOAP
ALSO PLAY IS GOING TO END UP
WITH A RESTRUCTURING OFF AND
GROUP BECAUSE RIGHT NOW IS STAY
FINANCIAL SUPERMAN COULD THEY
PROVIDE PAYMENT SYSTEM WHICH BE
PAID A HOT SYSTEM.
THEN THEY BRANCH OUT INTO
WEALTH MANAGEMENT INSURANCE,
BUT ALSO CONSUMER
LANDING WHAT THE CHINESE
REGULATOR, POTENTIALLY I'M NOT
HAPPY ABOUT IS THE REALLY
ALLOWING ONE SINGLE PLAYER TO
PROVIDING OR THESE PRODUCTS AND
SERVICES AND THAT COULD INCUR
TOO BIG OF A RISK FOR
THE COUNTRY. SO MAYBE WE WOULD
END UP SEEING AND GROUP HAS
BEEN BROKEN DOWN INTO DIFFERENT
THOUGHTS.
>> WHAT ABOUT THE RELATION TO
ALIBABA ALIBABA STOCK UNDER
WE'RE FORMING TODAY, JACK MA
THE FOUNDER OF AND BUT ALSO THE
LEADER THE FORMER
LEADER AND FOUNDER OF ALIBABA
HOW INTERTWINED OR BOTH OF
THESE COMPANIES.
>> WELL LOOK I MEAN THE MAGIC
OF ANY GROUP IS REALLY
THE PAY. ALL YOU PAY IS
ACTUALLY THE PAYMENT SYSTEM
THAT HAVE HOW WOULD A GROWTH
THE
BABA HISTORICALLY BECAUSE AT
THE TIME WHEN THE CHINESE
E-COMMERCE BEGINS TO TAKE OFF
PEOPLE NOT VERY CONFIDENT ALL
TRANSACTING ONLINE. SO ALI PAY
BECOMES THE PAYMENT SYSTEM WITH
TRUST THAT PEOPLE PAY TO
PAY FIRST, DO NOT RELEASE THE
PAYMENT TO THE MARGIN AND THAT
REALLY FACILITATE THAT KICKING
OFF THE HOMELESS FROM THEN ON
IT BECOMES HUGE. ALL OF THESE
OF COURSE IS THE BRAINCHILD OFF
JACK. HE IS THE FOUNDING
ENTREPRENEUR THAT PUSH FOR
INNOVATION GOING BEYOND
INDUSTRY BOUNDARY BEST OF
SUCCESS STORY AND HE HAS BEEN
STEPPING DOWN.
>> FROM YOU KNOW
RUNNING ALIBABA.
>> ABOUT 12 MONTHS AGO AND SO
THIS COMES VERY CRITICAL
MOMENT. BECAUSE THAT'S THE
LEADERSHIP TRANSITION. AT THE
SAME TIME BANK GROUP
TO BE SUPPOSEDLY TO BE ONE OF
THE BIGGEST IPO IN WORLD
HISTORY. NOW A
HUGE SCRUTINY. I WOULD SUSPECT
MAYBE DEVALUATION COULD NOT
ACHIEVE WHAT THEY HAVE BEEN
PLANNED BEFORE.
>> RELATION SHIP WHAT'S THE
BACK STORY. I'M HOWARD OF THE
RELATIONSHIP BETWEEN CHINA AND
CHINESE REGULATOR US AND I MEAN
PRESUMABLY, JACK MA WOULD BE A
HERO IN CHINA
RIGHT BECAUSE.
>> THESE BILLION MULTIBILLION
DOLLAR BUSINESS IS THAT HE'S
BUILT.
>> I MEAN IF YOU LOOKING INTO
THAT.
>> CHINESE AND TO PUT NO
REAL LANDSCAPE, JACK MA IS THE
SUCCESS STORY. HE'S THE ONE
REALLY
FROM MEN OUTSIDE PERSPECTIVE
AND WE NEED TO HELP THESE
ALIBABA AND PIE AND
GO ABROAD IS THE NATIONAL
CHAMPION NARRATIVE BUT I THINK
IN THE CHINESE
MENTALITY THAT'S ALSO BE
THINKING ABOUT WHEN THE TREES
TO BAY IS GOING TO GET HIT BY
THE WIN. AND MAYBE THE CHINESE
GOVERNMENT BEGINS TO COMPANIES
SO BIG AND SO SUCCESSFUL AND
BEING CONSTANCE SPOTLIGHT BY
INTERNATIONAL MEDIA MAY HAVE
TOO
MUCH POWER AND IN THE END IS
THE NATIONAL INTEREST AT STAKE
PRESIDENT. WHAT THE CHINESE
REGULATOR, PROBABLY DON'T WANT
TO SEE IS ONE SINGLE FINANCIAL
INSTITUTION WIELDING
TOO MUCH POWER ASKED A RESULT
IN COULD TOO MUCH CREDIT RISK.
AFTER ALL THANKFUL MOMENT
FOR ORDER
CREDIT BEING UNDERWRITTEN BY
AND GROUP IS ALL DONE BY OUT
WITH THEM AND IT
HAS BEEN AN AVID INTEREST TASK
FOR ANY OFF THE FINANCIAL
DOWNTURN, SO THAT MIGHT BE A
PRUDENT APPROACH.
>> AS A PROFESSOR
AT A BUSINESS SCHOOL WHERE DO
YOU COME DOWN ON THIS I MEAN DO
YOU THINK THAT THIS IS BEING
HANDLED PROPERLY. THE FACT THAT
THIS IS A FINANCIAL
INSTITUTION. AND FORMALLY THE
ARGUMENT OF CHINESE REGULATE
IS THAT IT HASN'T BEEN
REGULATED LIKE WHEN YOU AGREE
WITH THAT YOU THINK THAT'S
RIGHT.
>> I MEAN HERE IS WAY I
CONSTANTLY POWER EXECUTIVE TO
SEPARATE, YOU KNOW ONE SINGLE
COMPANIES FORTUNE VERSUS
THE KEY TREND THAT WE SO WHAT
WE HAVE BEEN 90 WAS WE COME
OHIO, WHAT WE CALL THE
READINESS INDEX. WE WANT TO SEE
ACROSS THE FINANCIAL
INSTITUTION. THERE ARE MANY YOU
KNOW THAT RIGHT IS NOT JUST
ANGRY BEES SUCCESSFUL, BUT
INSIDE CHINA PAYING AN
INSURANCE WHICH IS EQUALLY
SUCCESSFUL. THEY PROVIDE MANY
MANY DIFFERENT. SO THIS IS
MOBILE PAYMENT OR A WAY TO AUTO
HOME. AUTO FINANCING ETCETERA.
WHAT WE'RE TRYING TO LOWER AS
WE GOT ALL THIS OFF AND GROUP
FORTUNE BEING APPLICABLE WOULD
COMES ALONG SO I THINK
EXECUTIVE BENCHMARK WHAT HAS
BEEN CAUGHT SQUARE FOR
INSTANCE, AND WHAT WE'RE
SEEING IS CONSUMER HAKIM AND
THESE TYPE OF NEW FEE
THAT DISRUPTION WE WOULD SEE
THOSE CONTINUE TO UNFOLD BUT
INSIDE CHINA, YES, MAYBE IN THE
SHORT TERM TO REGULATION MAY
CHANGE AND MAY NOT HAVE
THE SUIT.
>> HER MOCK A TITLE FIGHT BOTH
IMPACT AND OR.
>> THINGS MAY GET
2 SEPARATE DOWN INTO MORE
SPECIFIC PLAYER MUCH MORE
CONSISTENT WITH THE WEST AND
WILL PERHAPS GOING FORWARD IN
ORDER TO REDUCE THE
CREDIT RISK. IF YOU ASK ME
MAYBE A LITTLE BIT MORE IN
OFFENSE.
>> HOWARD AT MY MY FINAL
QUESTION FOR YOU IS DOES THIS
HAVE ANY IMPLICATIONS FOR US
CONSUMERS OR INVESTORS.
>> WELL YOU KNOW I THINK FOR US
INVESTORS GOING FORWARD CLEARLY
THE
RETAIL INVESTORS WITH THE
CHANGES IN THE REGULATION MAYBE
IF THE RESTRUCTURING WOULD
BEING PUSHED AHEAD THEN
THE VALUATION ALL THAT WE CAN
NO LONGER CHIEFS SOMETHING LIKE
300 BILLION
US DOLLAR. MAYBE IT WOULD NEED
IT AT THIS, YOU KNOW DIFFERENT
IPO FULL SEPARATE PART OF THIS
BUSINESS THINK ABOUT PAYING AND
FOR INSTANCE RECENTLY THEY JUST
LAUNCH NEW FACTS TO GET THIS
THAT IN NEW YORK STARTED CHANGE
ONLY FOR THE
WEALTH MANAGEMENT OPERATION OF
SO THAT PIPE
WILL STRUCTURE MAYBE GET
REFLECTED IN THIS CASE FULL AND
GROUP THAT DIFFERENT PARTS OF
THE OPERATION MAY NO LONGER BE
GO ASK ON THE ONE CALLED LONGER
IT UMBRELLA BUT INSTEAD A
DIFFERENT PART OF THE OPERATION
WOULD HAVE TO OWN INDIVIDUAL
IPO THAT WILL BE A POSSIBLE
ROUTE TO GO. BUT CERTAINLY THE
P E RATIO MAY GET THEM IN A
LITTLE BIT.
>> HOWARD WE GOT TO LEAVE IT