China Considers Reviving Ant Group’s IPO

China Considers Reviving Ant Group’s  IPO
Photo: REUTERS / Aly Song 09.06.2022 74

Chinese financial regulators are discussing Jack Ma's Ant Group IPO, Bloomberg reported.

The China Securities Regulatory Commission (CSRC) has established a team to reassess Ant's share sale plans, Bloomberg reported. The company will also receive a license that will make the company regulated more like a bank and increase its chances for an IPO.

Following the Bloomberg report, the CSRC said it "has not conducted any assessment or research in this regard”, but that it supports “qualified platform enterprises to go public in domestic and overseas markets”.

Analysts believe the discussion of Ant Group's IPO signals an easing of restrictions in China's IT sector and will help regain investors’ interest.

Ant Group had expected to raise at least $34.4 billion in its 2020 IPO on the Hong Kong and Shanghai stock exchanges, but Chinese regulators foiled Ant’s IPO less than 48 hours before the anticipated trading. An antitrust investigation into Alibaba, the parent company of Ant Group, began in December 2020.

As The Wall Street Journal reported, Chinese authorities decided to "rein in" Alibaba Group founder Jack Ma, who had criticized China's banking system, and to scale back his technology business empire.

digital markets  China 

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