Record Entry For The Chinese Fintech Giant Ant Group Is Postponed

Record Entry For The Chinese Fintech Giant Ant Group Is Postponed

Record entry for the Chinese fintech giant Ant Group is postponed. The reason is a change in the regulatory framework in China. Ant Group was preparing for a dual listing on the Hong Kong and Shanghai stock exchanges, where its shares were to start trading on Thursday. However, the Shanghai and Hong Kong Stock Exchange announced on Tuesday that the initial IPO of Ant Group was being postponed. Shares of the Alibaba Group, which owns about 33 percent of the Ant Group, fell more than 8 percent in pre-exchange trading.

Does not meet the conditions for dimensioning

Chinese regulators interrogated Ant Group co-founder Jack Ma, CEO Eric Jing, and CEO of the company Simon Hua, the China Securities Commission said on Monday. According to the Shanghai Stock Exchange, the relevant regulators have summoned the majority owner and heads of the company. According to the stock exchange, Ant Group has also announced major changes in the regulatory environment, which may lead to the fact that it does not meet the conditions for listing on the stock exchange or disclosure requirements. Therefore, the Shanghai Stock Exchange decided to suspend the planned admission to the stock exchange. Ant Group was to be listed on the market for technology companies STAR Market (Science and Technology Innovation Board). Shortly afterwards, Ant Group announced that postponing its listing on the Hong Kong Stock Exchange was also postponed.

Higher market value than US banks?

Ant Group was to raise approximately $ 34.5 billion ($ 29.61 billion) from the initial issue, surpassing Saudi Aramco's record-breaking IPO to Saudi Arabia (just over $ 29 billion). The IPO was expected to value Ant Group at more than 300 billion. The company would thus have a greater market value than some large US banks, including Goldman Sachs and Wells Fargo. The Central Bank of China (PBOC) and regulators have translated a draft of new regulatory rules for online microloans that will also affect the Ant Group. Ant Group is a fintech division of the Alibaba Group and the dominant mobile payments company in China. There is a huge interest in the planned IPO on the part of both institutional and retail investors.