With hundreds of billions of yuan of wealth, why can’t Jack Ma withdraw thousands of yuan in cash from the bank?

2022-04-24 0 By

Jack Ma is envied as China’s richest entrepreneur, with a fortune of several hundred billion yuan, but he is as unlikely as any other rich person to withdraw a few hundred billion yuan in cash from the bank.For those at the bottom, the main form of assets is bank deposits.The houses of poor rural families are worth almost nothing and could not be sold if they tried. Their only valuable asset is their bank deposits, which they can withdraw at any time.The wealth of the middle class is more diversified, including stocks, funds and financial products in addition to bank deposits, but the most valuable is the real estate in the city.Some families own one house, while others own two.Can the house be liquidated?Yes, but not immediately, you have to sell it over a period of time and put it in the bank, and then you can get it out.For those with billions of dollars or more, houses are no longer the main form of wealth. Equity, especially in listed companies, is their biggest wealth.Take Jack Ma as an example, his stakes in Alibaba and Ant Group are worth hundreds of billions of yuan, accounting for the majority of all his wealth.So can equity be cashed out?This is a dichotomy.Cashing out could be self-destructive for a man as rich as Mr Ma, who owns a large stake in his company as well as being a symbol of it.He had to sell his shares in order to withdraw cash from the bank.A stock is like a commodity in that its price falls when there are more people selling it than buying it.For example, if Jack Ma sells a large number of Alibaba shares in a short period of time, alibaba’s stock price will collapse. Jack Ma cannot sell all of the shares at once, and the price drop of the remaining shares will make him much less valuable.On the other hand, founders selling stock can have a negative impact on the listed company.The market will think that even you are not optimistic about the company’s development, the company looks hopeless, and will sell along with it, which will further hit the company’s share price and cause the wealth of the rich to evaporate.As a result, it will take a long time for a rich man of Ma’s level to cash out, and it is unlikely that there will be hundreds of billions of yuan in the bank in the short term.Taking a step back, let’s say that after decades of cashing out, Jack Ma finally cashes all of his assets into bank deposits. Will he be able to withdraw the money smoothly?The answer is still unlikely.First, no bank has such a large cash pile.Banks keep a certain amount of cash in their vaults but only a few hundred million at most. Branches in big cities have more, usually less than a billion.Even through the transfer is difficult to achieve a few hundred billion yuan of cash.Second, according to the latest regulations, from March 1, large cash withdrawals need to declare the use, large refers to more than 50,000 yuan.This is to prevent money laundering.I specifically asked the branch managers I knew about the specific practices, and they were told that they were not quite sure how to operate at this stage.The possible way is more than 50 thousand yuan not much take now also can take out after filling a form to explain utility, the form is greater than essence.However, the approval of larger cash withdrawals will be strict, and customers may be persuaded to switch to other transaction methods such as transfer for unreasonable use.Jack Ma suddenly to come up with hundreds of billions of yuan in cash is impossible to avoid anti-money laundering investigation.In fact, he can’t name a sensible use for the hundreds of billions of dollars in cash he needs, and banks will basically reject him.So by any measure, It’s almost impossible for Jack Ma to cash out a few hundred billion yuan.The above reply hope to be useful to you, welcome to pay attention to, like @Wang Wu said money, your support is the best encouragement for the original!