Ant Group IPO resumption will depend on how company adapts to new fintech rules, CSRC official says

The speed at which Ant Group revives its nearly US$40 billion initial public offering will depend on how quickly the company responds to the “changing regulatory environment” in China, according to Fang Xinghai, the vice-chairman of the China Securities Regulatory Commission.

In his first public comments since regulators scuttled Ant’s highly anticipated listing amid a broader crackdown on technology giants, Fang said the timetable would depend on government efforts to reshape the regulatory environment for fintech companies and Ant’s adjustment to those changes.

Restarting Ant’s blockbuster IPO could take months as the company evaluates its options, but that has done little to dampen the appetite among international investors seeking to tap future growth in the mainland. Ant’s dual listing in Hong Kong and Shanghai was expected to be the biggest fundraising on record, surpassing Saudi Aramco’s US$29.4 billion listing last year.

The Shanghai Stock Exchange said on November 3 it was suspending Ant’s IPO less than 48 hours ahead of the planned start of trading because of new rules for fintech companies. A few days later, mainland regulators announced draft anti-monopoly regulations designed to curb the growing influence of tech platforms, including their use of data.