Alibaba shares dive 7% as Ant Group’s record IPO is suspended
Saturday, 11 07 2020, Category: Technology, Country: China
HANGHAI, China — Ant Group’s world record-setting initial public offering in Shanghai and Hong Kong has been suspended.
The Shanghai and Hong Kong stock exchanges made the announcement on Tuesday. Alibaba, which owns a roughly 33% stake in Ant Group, saw its Hong Kong-listed shares tumble by more than 7% in Asia trade on Wednesday. Alibaba shares on the New York Stock Exchange closed more than 8% lower overnight.
Ant Group’s controller Jack Ma, executive chairman Eric Jing and CEO Simon Hu were summoned and interviewed by regulators in China, according to a statement Monday from the China Securities Regulatory Commission.
On Tuesday, the Shanghai Stock Exchange referred to that meeting in explaining why it has suspended the IPO.
It said Ant has reported “significant issues such as the changes in financial technology regulatory environment,” according to a CNBC translation of the statement from Mandarin. “These issues may result in your company not meeting the conditions for listing or meeting the information disclosure requirements.”