Several large Chinese companies have recently been restructured for listing on the stock exchange, with most of them privately owned. Days after Alibaba’s restructuring was announced, Jingdong (JD.com), another Chinese e-commerce platform, announced on March 30 that its sub-companies JD Industrial and JD Production and Development will be spun off and listed on the Hong Kong stock exchange.
Analysts believe that the ruling Chinese Communist Party (CCP) is using the restructurings as a means of intentionally weakening the influence of private enterprises and the entrepreneurs behind them, while the private company owners are being allowed the opportunity to cash in as stockholders and investors seek investment opportunities….