Ant Group: The IPO that failed to launch

ADRAMATIC turn of events took place on Nov 3 that set the financial markets buzzing. Ant Group, imminently debuting as the world's biggest initial public offering (IPO) at US$37 billion, had the plug abruptly pulled on its listing by the Chinese regulatory authorities, citing "major issues".

The Shanghai Stock Exchange (SSE) offered a terse explanation that continues to leave market observers speculating. The explanation cited a regulatory interview with Ant Group founder Jack Ma and changes in the regulatory environment which may result in Ant not meeting listing qualifications or disclosure requirements. When this happened, the company was prompted to also suspend its planned listing on the Stock Exchange of Hong Kong (SEHK).

The Chinese authorities summoned Mr Ma to one or more "regulatory interviews" involving the People's Bank of China (PBOC), China Securities Regulatory Commission (CSRC), China Banking and Insurance Regulatory Commission (CBIRC) and the State Administration of Foreign Exchange (SAFE).