Amid China's crackdown on private firms, Xi Jinping announces stock exchange in Beijing

Chinese President Xi Jinping has announced that his government would set up a new stock exchange in country's capital, which would let Chinese Government have more influence in world of business and finance. According to reports, Xi Jinping me a vague announcement of new Beijing-based stock exchange at an international tre fair without revealing timeline of its establishment. China alrey has two stock exchanges which are located in Shanghai and Shenzhen, away from Beijing.

Communist regime is throwing its weight behind new stock exchange to bring in more resources and investment for Chinese companies because fundraising options in US have been dwindling, given evolving situation between US and China in past few years. Chinese companies have been facing regulatory hurdles while raising money in United States. US regulators have stepped up scrutiny on Chinese IPOs and required stricter disclosures about potential risks.

Moreover, decision of a new stock market also comes out of apprehensions of Xi Jinping Government that Chinese tech firms, who are raising money overseas, may give access to sensitive data to foreign governments. Although Xi Jinping-led regime is planning a Beijing based stock market to bring in investment for tech companies, it has for past year led a serious crackdown on several large-scale industries which have been instrumental in flourishing of economy and bringing 'sort of' an industrial revolution in country.

Crackdown by Chinese communist regime

communist regime has led a crackdown on various subjects ranging from video games, celebrity culture and online fan followings, for what regime claims to be a b influence on country's youth. Media houses, billionaires and several or individuals who have been critical of Xi Jinping government in past have eir been arrested or have disappeared from public light.

autocracy of regime has led to likes of Alibaba founder Jack Ma and several ors, living in oblivion who were once messiahs of tech industry, who substantially contributed to Chinese economy. Chinese billionaire Jack Ma who was said to be richest man in China has recorded a steep fall in his fortune within a year, thanks to communist regime's clampdown.

It is worth mentioning that Jack Ma abruptly came under fire from Chinese regime after he spoke against financial regulators in a public speech in October last year. Since n, 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 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 ideology of Chinese Government. Ride-hail company Didi Chuxing, which once did more trips than Uber in China and later spre to Latin America and Africa, has also suffered crackdown of Xi Jinping's government just two days after it got listed in New York Stock Exchange raising $4.4 billion.

(IMAGE: AP)