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JD Technology withdraws IPO application in Shanghai amid China’s fintech rule changes
- Fintech company JD Technology has pulled its IPO application in China’s Nasdaq-style Star Market
- The withdrawal came a day before parent JD.com completed a reorganisation that transferred its cloud and AI operations to JD Technology
Minghe Huin Beijing
Fintech company JD Technology, a unit of e-commerce giant JD.com, has withdrawn its application for an initial public offering (IPO) in China’s Nasdaq-style Star Market amid sweeping regulatory changes in its industry.
The company, previously known as JD Digits and JD Finance, pulled its public listing application on March 30, according to a statement posted on the Shanghai Stock Exchange website on Friday.
The IPO withdrawal came a day before JD.com completed a reorganisation that transferred its cloud computing and artificial intelligence operations as well as other assets worth 15.7 billion yuan (US$2.4 billion) to JD Technology.
A JD.com spokeswoman did not immediately reply to a request for comment on Friday.
JD Technology was earlier said to be rethinking its IPO plans, according to a report by the South China Morning Post, citing two sources briefed about the discussions who declined to be named. The report said the fintech company planned to pull out its application and resubmit it at a future date.
The withdrawal has come amid sweeping regulatory changes in China’s financial technology sector, which resulted in authorities halting the US$35 billion IPO in Hong Kong and Shanghai by Ant Group just 48 hours before trading was expected to start in November last year. Ant Group is an affiliate of Alibaba Group Holding, the parent company of the Post.
Regulators have since published a slew of new rules covering financial services offered by internet platforms and technology companies to guard against certain financial risks.
Chinese e-commerce firm JD.com quarterly revenue rises 31 per cent on online retail strength
Chinese e-commerce firm JD.com quarterly revenue rises 31 per cent on online retail strength
In January, JD Technology named Li Yayun as its new chief executive, replacing Chen Shengqiang. Li, who served as JD.com’s chief compliance officer and the Communist Party secretary in the company, had never been in charge of a business unit before.
JD.com, which is controlled by founder Richard Liu Qiangdong, has been on a tear in Hong Kong’s IPO market. Its delivery arm, JD Logistics, applied in February to float its shares in the city, where it could raise about US$5 billion. Its JD Health business raised US$3.5 billion in its maiden share offering in December, six months after the parent company raised US$4.5 billion in a secondary listing in Hong Kong last June.
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