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Why was the IPO of Ant Financial suspended at the last minute?
06 Nov 2020 (118 views)

The IPO of Ant Financial in Shanghai and Hong Kong was suspended two days before it was scheduled to be launched. It was the largest IPO on record. 

What cause the suspension? It is explained in this article

Ant Financial is the owner of the AliPay platform - which is the largest platform for processing of electronic payment. It is larger than Visa and Mastercard combined.

Ant Financial was also intended to give micro loans to consumers and small businesses. In this business activity, it operates like a bank. 

The regulators wanted Ant Financial to have adequate reserves to back up their lending activities, similar to the requirements imposed on banks. New regulations would be issued to control these activities. This was felt to be necessary to ensure that the financial system does not get into serious risks.

Although the change of regulation comes in quite late, I believe that it is necessary. 

Tan Kin Lian 

 


Why was the IPO of Ant Financial suspended at the last minute?
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The IPO of Ant Financial in Shanghai and Hong Kong was suspended two days before it was scheduled to be launched. It was the largest IPO on record. 

What cause the suspension? It is explained in this article

Ant Financial is the owner of the AliPay platform - which is the largest platform for processing of electronic payment. It is larger than Visa and Mastercard combined.

Ant Financial was also intended to give micro loans to consumers and small businesses. In this business activity, it operates like a bank. 

The regulators wanted Ant Financial to have adequate reserves to back up their lending activities, similar to the requirements imposed on banks. New regulations would be issued to control these activities. This was felt to be necessary to ensure that the financial system does not get into serious risks.

Although the change of regulation comes in quite late, I believe that it is necessary. 

Tan Kin Lian