This move may mean that listings on the world’s largest stock exchange will continue.
On Monday, the Central Bank of China and other regulatory agencies notified Ant Group that the company must be transformed into a financial holding company.
This change will mean that this financial giant will be subject to the same supervision as an ordinary bank.
-In accordance with the guidance of financial regulators, we will do our best to implement the plan to make our business fully comply with the standards.
The regulation of Ant Group is up to date Wall Street Journal Said it carried out “a series of fierce attacks” on the company of Ma Yun, the former richest man in China.
Ant Group will be listed on the stock exchange in November 2020 The world’s largest List.
The company’s market capitalization at the time was NOK 2.9 trillion, ranking fourth among the world’s largest financial companies.
The Chinese authorities stated that the listing ceased only two days ago due to the “financial regulatory environment.” It took less than two weeks for Ma Yun to openly and fiercely criticize the technical regulations of the authorities.
After the authorities stopped the listing of Ant Group, they also investigated Ant Group’s parent company Alibaba and one of the other companies founded by Jack Ma.
Earlier this week, the investigation was over Largest fine in its class In Chinese history.
The Chinese market regulator found that Alibaba used its dominant position in the market to deter competitors and imposed a fine of 24 billion Norwegian kroner on the company. This is equivalent to 4% of Alibaba’s turnover in 2019.
When the Ant Group succumbed to pressure from the authorities and transformed part of the company into a financial holding company, the issue of the “financial regulatory environment” will now be resolved.
Then, the world’s largest IPO may appear again.
Strict supervision and increased compliance costs may undermine the company’s growth. South China Morning Post.