After the Chinese central bank and three other regulators held a meeting with Jack Ma, the ANT group has followed the opinion and guidelines, with analysts believing that regulatory scrutiny could have a negative effect.
China has warned Jack Ma and other senior executives on Alibaba’s expansion of financial services ant group corporation. China has said that the move could lead them to face sanctions. China has warned of increasing regulatory risk, especially on the world’s largest IPO. China has issued this warning a few days before the IPO’s trading debut.
Central Bank and three other financial regulators gave the summons
Ant’s co-founder and China’s most powerful businessman, Jack, was summoned by China’s central bank and three other financial regulators. Jack Ma then had a meeting with the central bank and other financial regulators on Monday. However, the information discussed in this meeting has not been revealed. According to sources familiar with the matter, ANT’s leadership team has said that regulatory scrutiny could increase on the company. Also the capital may be banned.
China’s new regulations may apply to Ant Group
Investors believe that new regulations may apply to the ANT group in China. But it will not have any impact on history’s biggest stock market debut. Ant Group has brought in the largest IPO of $ 34.5 billion. Retail investors have bid $ 3 trillion in this IPO brought together in Shanghai and Hong Kong.
Regulatory Risk Larger Risk Factor for ANT Group
Sanford C. Bernstein analyst Kavin Quick said in a note that regulatory risk is a major risk factor for the Ant Group. We think that this news will have a continuous negative impact on the listing and we believe that most investors will remain optimistic on the positive long-term prospectus of ANT. However, given the signs of regulatory intervention, investors may reconsider their perception.
All guidelines will be followed: Ant Group
According to a statement issued by CSRC on Weibo, Jack Ma was also present with Ant Chairman Erick Jing and Chief Executive Simone Hue during a meeting with China’s central bank, China Securities Regulatory Commission and Foreign Exchange Administration. At the same time, Ant Group has issued a statement that the meeting’s opinion and all guidelines will be followed.
Aramco’s IPO broke Alibaba’s record, now Aramco again behind Alibaba
Saudi Arabian oil company Saudi Aramco had an IPO of $ 29.4 billion last year. Then it became the world’s largest IPO, surpassing Alibaba’s 2014 issue ($ 25 billion). However, now Alibaba is ahead again, because Ant Group is the company of Alibaba.
Stock listing will be on November 5
Trading of the Ant Group stock will begin in the Shanghai and Hong Kong markets from November 5, ie, 2 days after the election of the US President. That is, if the US elections have a big impact on the stock markets of the world, then the listing of Ant Group can also be affected.
The world’s 10 largest IPO
|Ant group||35 billion dollars|
|Of Saudi Aram||$ 29.4 billion|
|Alibaba||25 billion dollars|
|Soft bank||$ 21.1 billion|
|THAT||20.4 billion dollars|
|Visa||19.7 billion dollars|
|GM||18.1 billion dollars|
|ENEL||17.4 billion dollars|
|ICBC||16.1 billion dollars|
|NTT DOCOMO||16 billion dollars|