Chinese Technology Companies Postponed The IPO

Chinese technology companies postponed The IPO. IPO postponement plans reached record levels.

The financial technology company Ant Group, which was on the agenda about the disappearance of billionaire Jack Ma in China, caused more Chinese companies to postpone the public offering plan. According to the figures compiled by the Financial Times source from China's Star Exchange data, 76 companies in the country decided to postpone the public offering plan in March. This figure revealed that the public offerings canceled were delayed more than twice as compared to the previous month. Star Market in China is described as "China's Nasdaq". China was considering stricter rules for public offerings on the Nasdaq-like Star Exchange in Shanghai. According to the plan, some new regulations will come into effect, such as companies proving their technology competence. The sources, who informed Bloomberg in the previous period, noted that with the new regulations of the China Securities Regulatory Commission, in order to protect investors and companies, the audits on the financial situation of companies will increase. In addition, the sources stated that the tightening regulations will be compelling for financial technology companies such as billionaire Jack Ma's Ant Group and the applications will be examined carefully. Ant Grup's $ 35 billion public offering was shelved in November, citing the company's business model as a reason after the changes in the fintech regulation.     Source: Bloomberg HT