China postpones ant’s IPO after talks with Jack Ma

the Shanghai The day after Chinese regulators voted on the new FinTech rules and called Jack Mae and other senior executives to a closed-door meeting, the exchange announced it was postponing the group’s extended initial public offering. scholarship holder.

A rare conversation between major Chinese financial regulators and the ants “reveals big changes in this FinTech Regulatory environment, “the agency could be disqualified from listing on November 5, Bors said in a statement the evening of November 3.

The nature of these “changes” is unclear, although the board has asked the agent to disclose them. Note 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, subsequently sparked widespread controversy.

The ant has stopped its activity Initial Public Offering In Hong Kong, it was planned to list at the same time as receiving the notice from Shanghai Ad In a report.

We apologize for any inconvenience to investors. We will deal with follow-up issues properly by following the compliance rules of both exchanges, ”he said.

Ant has tried 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 organization’s image as a scary financial giant and stress out a good tech vendor. The campaign started a few years ago, prompting the organization to come up with bad pieces like this ”Techfin”(As opposed to Fintech) and Announce It does not compete with traditional financial institutions, many of which are run by the government.

The promises were not just a show. The ant slowly turned into a Online marketing Associate millions of customers with financial products offered by traditional players. It brings together important state actors such as the National Social Security Fund and China International Capital Corporation as shareholders.

But the guaranteed amount does not seem sufficient. Economic authorities of China Posted New proposals to stay in the fintech sector on Monday, a few days before the ants arose 34.5 billion in the world’s largest initial public offering. While the project did not explicitly target the agent, it coincided with the agent’s meeting with financial executives.

“We exchanged views on the health and stability of the economy,” an ant spokesperson told TechRunge in an earlier statement. “Group of ants Meeting Comments is committed to a thorough implementation and to continue its journey 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 bow to 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 step in China’s efforts to achieve stability in the FinTech sector. The bills include a ban on interprovincial online lending unless approved by authorities; Maximum online loan amount of 300,000 yuan (000 45,000) per person; And a share capital limit of one billion yuan for online microlons lenders.

The company issues 41.9 billion yuan, or 34.7%, of Ant’s swollen lending 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 consumer loans. small enterprises.

Over the years, Chinese 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 competitors No more Take advantage of last year’s consumer reserve fund interest income.

The article was updated on November 3, 2020, with the announcement of the ant.

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