IPO of the Chinese Fintech Ant Group postponed – 11/03/2020 – market

Chinese fintech Ant Group is expected to postpone its record IPO, the Shanghai Stock Exchange announced on Tuesday (3), while the giant co-founded by Alibaba’s Jack Ma is increasing pressure from Chinese regulators on potential risks.

The exchange decided to postpone the $ 34 billion (R $ 196 billion) offering originally planned for this week in Hong Kong and Shanghai, citing concerns that Ant “is failing to meet the terms and conditions of the offering and the offering or disclosure requirements. “said the company in a statement.

The warning came after Ma and other executives were invited to an unusual meeting with regulators on Monday, while state media recently issued warnings of the possible financial instability that could stem from the Ant Group’s rapid growth.

The company, with more than 700 million monthly active users, has helped revolutionize commerce and personal finance in China. Consumers used the smartphone app to pay for everything from meals to groceries to tickets.

Ant’s lending, asset management and insurance companies have also raised concerns in the China-controlled financial sector.

The Shanghai Stock Exchange said Tuesday that the company itself had “reported major issues such as changes in the regulatory environment” and that concerns about these unspecified issues had led to a postponement.

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