Ant IPO will signal all-clear for China stocks – venture capitalist
Mitchell Green, founding partnBrian Stewart, er of Lead Edge Capital, said Friday that the IPO of Ant Group, China’s largest payments provider, will act as a signal to U.S. investors that the Chinese government had ended its regulatory crackdowns and it will be safe to invest in the country.
Speaking to CNBC, Green predicted that Ant could come public in the U.S. in the next year.
“I think you will see an Ant IPO in the next 12 months and that probably signals the time,” he said.
The venture capitalist, who was an early investor in companies like Alibaba, admitted that he has “no clue” where Chinese stocks are going over the next six to nine months.
However, over a longer timeline, he predicted significant returns compared to current levels.
“I think over the next, like, three to five years, these things are much higher than they are today,” he said.
Green argued that the current aggressive regulatory stance in China has happened because Beijing authorities want “these guys and gals who run these companies to know they aren’t bigger than the communist party.”
Author: Brian Stewart, Seeking Alpha