China’s halt of Ant IPO ‘necessary, reasonable’ to curb risks: state media

In this news, we discuss the China’s halt of Ant IPO ‘necessary, reasonable’ to curb risks: state media.

SHANGHAI (Reuters) – China’s move to suspend Ant Group’s $ 37 billion listing is “necessary, reasonable and legal,” given growing concerns about financial stability risks, a major newspaper supported by the Chinese state, quoted by an expert.

Beijing’s surprise stocks on Tuesday thwarted the world’s biggest stock market debut days from time to time, in a dramatic blow to the fintech company founded by billionaire Jack Ma.

Recently, there has been more public discussion in China about the problems caused by the entry of large technology companies into the financial space, especially on fair competition and data privacy, said the Chinese Securities Journal, Zhang Zixue, professor at the Chinese University of Political Science and Law.

Ant and his intermediaries should “fully assess the problems and risks reflected in public opinion, and take effective preventive measures,” he told the newspaper.

The Shanghai Stock Exchange said it had suspended the company’s initial public offering (IPO) on its technology-driven STAR marketplace, prompting Ant to also freeze Hong Kong’s leg of its scheduled double listing on Thursday. .

The decisions follow a meeting with Chinese financial regulators on Monday in which Ma and its executives were told Ant’s lucrative online lending business would come under closer scrutiny, said officials said. sources at Reuters.

Topic “Ant Group IPO Suspended” Was Main Topic in China Twitter- like Weibo on Wednesday morning, collecting around 640,000 threads.

Some have said that if regulators had “turned a blind eye” to Ant’s rapid growth in the past, its IPO meant they could no longer do so, as risks would now shift to its shareholders and the public. .

Many have targeted Ma, who gave a speech at an event last month attended by Chinese regulators who criticized the financial and regulatory system as stifling innovation and needing reform to fuel growth.

Commentators said Ma, who also founded Ant’s subsidiary Alibaba Group, had forgotten her place.

“How dare he tell others how to regulate!” said a user called “Pangtianshi,” who has 1.1 million subscribers.

Reporting by Brenda Goh; Edited by Lincoln Feast.

Original © Thomson Reuters

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