Hong Kong: The planned stock market debut of the world's biggest online finance company, Ant Financial was suspended in Shanghai and Hong Kong, disrupting a record-setting $34.5 billion initial public offering that highlighted China's recovery from the coronavirus pandemic.
Management of the Shanghai stock exchange on Tuesday cited regulatory changes in Ant's industry and a possible failure to meet disclosure requirements, but it offered no details. The Hong Kong exchange followed suit several minutes later.
The suspension comes after a Monday meeting between regulators and company executives, including Ant founder Jack Ma, China's richest entrepreneur.
The market debut of Ant, spun off from Ma's e-commerce company Alibaba Group, highlighted the rebound of China, the first major economy to return to growth after the coronavirus pandemic began last December. Ant operates Alipay, the world's biggest financial technology company and, along with Tencent's WeChat Pay, one of two dominant electronic payment systems in China.
In a joint statement, the Chinese central bank, securities regulator and other agencies said Monday they had regulatory interviews with Ma, Ant Group chairman Eric Jing and president Hu Xiaoming. Neither side disclosed details of the meeting. Views regarding the health and stability of the financial sector were exchanged, Ant Group said in a prepared statement. The company said it was committed to implementing the meeting opinions but gave no details of what instructions the executives received.
We will continue to improve our capabilities to provide inclusive services and promote economic development to improve the lives of ordinary citizens, the company said. Ma founded e-commerce giant Alibaba in 1999 to help match Chinese wholesalers with foreign retailers. Alipay was created to facilitate payments in an economy where few people had credit cards.