On Tuesday, just two days before the planned listing, regulators in Shanghai pulled the plug, at least temporarily.
The Shanghai exchange told Ant in a notice that changes in financial
technology regulatory requirements and other "major issues" meant the
company didn't meet the requirements needed to list on its exchange.The
news sent shockwaves through the financial world, and came as a surprise
to Ant. Just hours before the suspension, the company was still
confirming attendees for its planned post-IPO party in Hong Kong,
according to Bloomberg.
Subscribe to Eastworld for weekly insight on what’s dominating business in Asia, delivered free to your inbox.
In a statement on Tuesday, Ant apologized to its investors and said it
would "wait for further notice" from the Shanghai stock exchange before
making any further announcements on the status of the IPO. It delayed
its planned listing in Hong Kong too. Ant did not respond to Fortune's
request for comment.
The news throws a wrench in the prospects of Chinese tech firms looking to raise capital. For months now, overseas
exchanges have grown increasingly inhospitable for Chinese firms, and
markets closers to home—Shanghai, Shenzhen, Hong Kong—have seemed to
offer solace. But the mounting problems for Ant offer a sober reminder
to Chinese companies that their home turf has its own special set of
risks.
