The Shanghai The day after Chinese regulators weighed in on the new FinTech rules and summoned Jack Mae and other top executives to a closed-door meeting, the stock exchange announced it was postponing the stock group’s extended initial public offering.
Rare conversation between China’s top financial regulators and ants, “reveals big changes in this Fintech Regulatory Environment, ”the agency may be disqualified from listing on November 5, Bors said in a statement on the evening of November 3.
It is not clear what those “changes” were, although the board has instructed the agent to disclose them. It should be noted that Ma gave one at the end of October Provocative speech Criticizes China’s economic control. The conference, which was attended by senior Chinese leaders, later sparked widespread controversy.
The ant stopped its activity IPO In Hong Kong, it was planned to list at the same time as receiving the notice from Shanghai Announced In a statement.
We apologize for any inconvenience to investors. We will handle follow-up matters properly by following the rules of compliance of both the exchanges, ”it said.
Ant has been trying for years to engage in the good grace of the authorities. When it is Renamed from Ant Financial to Ant Technology This year, the feature is seen as an attempt to see the image of the organization as a frightening financial giant and to stress out a good tech provider. The campaign started a few years ago, prompting the organization to come up with bad coins like this ”Techfin”(As opposed to Fintech) and Announce It does not compete with traditional financial institutions, many of which are government-led.
Promises were not just a show. The ant slowly grew into one Online Marketing Matching millions of customers with the financial products offered by traditional players. It brings together heavyweight state actors such as the National Social Security Fund and China International Capital Corporation as shareholders.
But the guaranteed amount does not seem to be enough. Economic authorities of China Released New proposals to stay in the fintech sector Monday, days before the ants were to be raised 34.5 billion in the world’s largest initial public offering. Although the draft did not explicitly target the agent, it did coincide with the agent meeting with the financial executives.
“We exchanged views on the health and stability of the economy,” an ant spokesman told TechRunge in an earlier statement. “Ant group Meeting Comments is committed to in-depth implementation and to continue our course based on the following principles: sustainable innovation; Take control; Service to the real economy; Win-win collaboration. ”
The message was clear: the ants are trying to comply with Beijing’s wishes.
“We will continue to improve our capabilities to provide comprehensive services and promote economic development to improve the lives of ordinary citizens,” the company added.
The proposal is the latest move in China’s efforts to achieve stability in the fintech sector. The draft laws include a ban on interprovincial online loans unless approved by the authorities; Maximum online loan amount of 300,000 Yuan (, 000 45,000) per person; And a registered capital limit of one billion yuan for online microlon lenders.
The company is issuing 41.9 billion yuan, or 34.7 percent, of Ant’s ballooning loan business, according to the company’s IPO. Prospectus. In the year to the end of June, Ants operated more than 100 banks, providing 1.7 trillion yuan ($ 250 billion) in consumer loans and 400 billion yuan ($ 58 billion) in small business loans.
Over the years, China’s financial regulators have abandoned many other policies that limit the expansion and profitability of fintech players. For example, AliPay, the ant payment service, and its rivals No more Make profitable interest income from consumer reserve funds from last year.
The article was updated on November 3, 2020, with the announcement of the ant.
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