Ant Group’s IPO is Suspended. Chinese Regulator Cites “Major Issues” In an online notice posted today, the Shanghai exchange said that the company’s proposed offering may not meet the conditions for listing after Chinese regulators summoned Jack Ma, Ant’s controlling shareholder and the founder of Alibaba, for a meeting yesterday. Alibaba is down around 6% as of this recording, having been down even more this morning. Lets discuss what is going on and what might happen with the Ant group IPO.
Welcome back to patrick boyle on finance this morning’s big stock market news is that the shanghai stock exchange has suspended the ipo of ant group the chinese fintech spin-off of alibaba in the surprising twist just two days before what was supposed to be the largest ipo in history in an online notice posted today the shanghai exchange said that the company’s
Proposed offering may not meet the conditions for listing after chinese regulators summoned jack ma and controlling shareholder and the founder of alibaba for a meeting yesterday alibaba is down around six percent as of this recording having been down even more this morning in its new york listing so let’s discuss what’s going on and what might happen with the
Ant group ipo okay so this is breaking news right now so it’s rather difficult to say exactly what’s going on but essentially ant group’s 37 billion dollar public offering in shanghai and hong kong has been suspended by chinese regulators one day after officials summoned jack ma and some other ant executives for an interview ant group which is china’s largest
Fintech company was set to list this thursday in both cities in a record-breaking ipo neither the regulators nor and have disclosed what was discussed at the meeting but the timing of the meeting just days before and shares were expected to begin trading concurrently in shanghai and hong kong suggests that the chinese government is unhappy with either the company
Or with jack ma the shanghai stock exchange said in a statement that mr ma and founder had been called in for supervisory interviews and there had been other major issues including changes in the financial technology regulatory environment this material event they say may cause the company to fail to meet the issuance and listing conditions or information
Disclosure requirements of the exchange the exchange said our exchange has decided to postpone the listing of and financial the exchange then told and and its underwriters to make an announcement about the suspension shortly after the shanghai exchange made the announcement and said that it would also suspend the hong kong leg of its listing as well over the
Last 10 years and has transformed the way people in china interact with money the alipay app has become an everyday payment tool for hundreds of millions of smartphone users in china as well as being a platform for obtaining small loans and buying insurance and investment products in doing so and has challenged the dominance of china’s state-run banks and other
State-connected financial institutions regulators have shown concern over anne’s fast growth and they have expressed in the past fear that it may be too big to fail now and has reacted to this criticism over time by reducing its use of its own money to extend loans now effectively acting as an agent for banks introducing them to individual borrowers and small
Businesses that they might not otherwise reach a lot of people are pointing to a speech that jack ma gave last month criticizing china’s state-owned banks at a financial summit in shanghai mr ma suggested that the big banks had a pawnshop mentality and that ant was playing an important role in extending credit to innovative but collateral poor companies and
Individuals on monday so yesterday a chinese financial regulator criticized and and other chinese fintech companies noting that their consumer lending products charged higher fees than credit cards issued by banks in addition he said that fintech companies often lured young people into overspending so that some people in low-income groups and young people fall
Into debt traps around the same time the pboc and china’s banking regulator jointly released new draft regulations on online lending this monday which will oblige and to cap loans at around 45 000 u.s dollars or one-third of a borrower’s annual pay whichever is lower these new rules could make issuing loans across china’s provinces harder and some analysts are
Saying that it will definitely impact anne’s expected earnings now in a press statement an ant group spokesperson apologized for the suspension of its ipo saying that they will work through the regulatory concerns with the hong kong and shanghai stock exchanges now i made a video probably a little over a week ago about antitrust regulation and how u.s antitrust
Regulators are starting to look at the u.s tech giants like google apple facebook and amazon antitrust is always an issue in the world of finance when dealing with very large companies that have dominant positions in their marketplaces it is however extremely unusual or in fact kind of unheard of for antitrust type issues to raise their head this late in an ipo
Process this can’t be good for investors faith when investing in chinese companies and is most likely designed to send a very strong message to business leaders in china not to step out of line with the government let me know your thoughts in the comment section below on this issue and whether you think the ant ipo will even go ahead at all and don’t forget to
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Transcribed from video
Ant Group's IPO Suspended. Chinese Regulator Cites "Major Issues" By Patrick Boyle
