Beijing (PingWest)—Officials from China's financial regulators said on Friday that the decision to stop Ant Group’s planned IPO was based on a comprehensive consideration of safeguarding the interests of financial consumers and investors, according to Reuters.
The $37 billion issuance of Ant Group, the fintech affliate of e-commerce giant Alibaba, was stopped by Chinese financial watchdogs on Tuesday. The company was set to make its market debut in Hong Kong and Shanghai on Thursday.
The move comes amid broader efforts by Chinese policymakers to prevent systemic financial risks and curb rising debt. It puts the company and its investors in a difficult position, and its executives are now racing to meet stricter regulations.
“The decision was made in accordance with laws and regulations... and about maintaining stable, healthy market development in the long term,” Liu Guoqiang, deputy governor of the People’s Bank of China (PBOC), told reporters.
Liang Tao, vice chairman of the China Banking and Insurance Regulatory Commission (CBIRC), said the department hopes all business entities would “remain in compliance with laws and regulations when doing business with and cooperating” with Ant Group.
“We encourage the financial sector to explore reasonable innovation while put risks under control,” Liang told reporters. “At the same time, we will regulate fintech in accordance with its nature of finance, and include all financial activities into the regulatory framework.”