You do know CCP cronies and sons of party high officials hold stock in Alibaba right?
Basically if you are a big enough company in China, you aren't gonna get away from this, either by introducing red capital yourself, or the red capital is gonna force their way in when you want to go public(you need to apply for it in China and the quota is very limited).
The most interesting thing going on in that respect with Chinese companies such as Alibaba, is that the government is forcing public companies to accept board members from the government. They've also taken nominal stakes in the companies as cover. [1][2][3]
There was endless speculation [4][5] that Jack Ma was forced out of power at Alibaba, by the government over concerns about the tech giants becoming too central to the Chinese economy and communications. Jack Ma was probably the most powerful person in China next to Xi.
Maybe I didn't frame it the right way, but there's an inherent difference between simply hold stock, and let red capital profit exponentially in exchange for political risk minimization and shadow clout.
Basically if you are a big enough company in China, you aren't gonna get away from this, either by introducing red capital yourself, or the red capital is gonna force their way in when you want to go public(you need to apply for it in China and the quota is very limited).
One of the least shady example: https://dealbook.nytimes.com/2014/07/20/alibabas-i-p-o-could...