The Shanghai Stock Exchange today announced that it is suspending Ant Group's decision to list on China's Nasdaq-style sci-tech innovation board, also known as the STAR market, after Jack Ma, the founder of Alibaba, was summoned by Chinese regulators.
Subsequently, Ant Group said it would also hold off on listing in Hong Kong.
Alibaba fell about 4 percent in pre-market trading hours after the announcement, which came two days before Ant's planning listing on November 5.
The SSE said Ant Group is operating in a changed fintech regulatory environment after its actual controller, chairman, and general manager were interviewed by regulators, which could result in it not meeting listing conditions or disclosure requirements.
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On November 2, the People's Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, and State Administration of Foreign Exchange conducted regulatory interviews with Ant Group's actual controller Jack Ma, chairman Jing Xiandong, and president Hu Xiaoming.
That night, Ant Group responded that it would deeply implement the interview advice and continue to improve its ability to provide inclusive services to help develop the economy and people's livelihoods.
According to 21jingji.com, an investment banker pointed out that if a company is subject to a regulatory interview during its listing, it is a post-meeting material matter and should be required to make additional disclosures. "You can re-list after the supplementary disclosure."
According to Tencent News, Ant Group will need to restructure the business content of the listed segment as well as revaluation after the suspension.
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