China’s Star Market introduces new listing rules that could freeze out Ant Group for good

Name: What is Jack Ma’s Ant Group and how does it make money?
Uploaded: 2021-04-18T12:07:01.000Z
Duration: 3 min 4 s
Description: What is Jack Ma’s Ant Group and how does it make money?

The fintech firm has been ordered to restructure its operations, a change that could see it barred from the Shanghai-based exchange

Property developers and financial investors will not be allowed to list on the Star Market under the new regulations

Reading Time:3 minutes

Why you can trust SCMP

The market was designed to help tech firms raise capital. Photo: Reuters

Karen Yeung

Published: 8:07pm, 18 Apr 2021Updated: 8:07pm, 18 Apr 2021

China has banned companies whose main business is financial activities or property investment from listing on the Nasdaq-style Star Market – a move that could potentially close the door on Ant Group floating shares there.

Ant, a fintech affiliate of Alibaba Group Holding, has faced increasing pressure from the authorities since its initial public offering was cancelled last year and was recently told by Beijing to restructure into a financial holding group,

Under new rules announced on Friday by the Chinese Securities Regulatory Commission, applicants will be divided into three groups, one of which – property developers and financial investors – will be banned from listing on the Shanghai-based exchange.

Applications from “fintech” or “business model innovation” firms will be subject to extra scrutiny although listing is still possible.

03:04

What is Jack Ma’s Ant Group and how does it make money?

Meanwhile, technology firms, including those make information systems and advanced manufacturing equipment, will be fast tracked.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x