Ant IPO debacle prompts rethink on China fintechs

Push for fintechs to have more skin in the game could increase their accountability, cut excessive consumer leverage

Published Wed, Nov 4, 2020 · 09:50 PM

Singapore

THE suspension of Ant Financial's US$34 billion initial public offering (IPO) less than 48 hours before its trading debut is expected to dampen the valuation of Alibaba's fintech arm, as well as that of other Chinese fintech companies looking to list in Greater China or even in the US, industry watchers say.

No one is expecting this to be the end of Ant's listing aspiration. Most believe the deal will return as soon as just months, albeit at a smaller size, once the regulatory issues are straightened out.

On Tuesday evening, Ant said it had been informed by Chinese regulators that its proposed A-share listing on the STAR Board will be suspended, as the group may not be able to meet listing qualifications or disclosure requirements in light of "mat…