Ant Group's record $34.5 billion IPO suspended in Shanghai and Hong Kong a day after Jack Ma met with China regulators
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- Ant Group’s IPO has been suspended in Shanghai and Hong Kong a day after Jack Ma and top executives were questioned by China regulators.
- The meeting and changes in the regulatory technology environment have disqualified Ant Group from listing on the exchange, according to a filing by the Shanghai stock exchange.
- Alibaba shares plunged 8% in pre-market trading.
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Ant Group’s initial public offering has been suspended on both Shanghai and Hong Kong stock exchanges a day after billionaire Jack Ma was summoned by Chinese regulators.
Four departments jointly interviewed Ant Group’s top executives on Monday. No further details were provided on the matter.
The supervisory interviews and changes in financial technology regulatory environment might cause Ant to fall short of the listing requirement regarding information disclosure, the Shanghai stock exchange said in a statement.
“This major event may cause your company to fail to meet the issuance and listing conditions or information disclosure requirements,” the statement said.
Ant Group’s controller Jack Ma, executive chairman Eric Jing, were interviewed by authorities who believed that material information was withheld. They were told by regulators that Ant’s lucrative online lending business faces tighter government scrutiny, Reuters said.
Ant Group disclosed on Tuesday that its shares on the Hong Kong Stock Exchange would also be suspended. “Further details relating to the suspension of the H Share listing and the refund of the application monies will be made as soon as possible,” Ant said in a statement.
Alibaba shares plunged 8% in premarket trading.
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