The China Securities Regulatory Commission established a special team to assess the fintech giant’s share sale scenarios, said Bloomberg. China regulators have kicked off the potential float for the sector to hit the technology trends. Ant Group’s IPO follows the opportunity after the report from the Chinese regulators. Chinese authorities are also working on the final stages of the Ant issue. It has actually been a long-awaited license. The breakthrough would ease the IPO and company regulation.
In this case, the securities regulator is looking forward to Ant’s plan especially for Shanghai listing. The firm expects to conduct a dual listing in two regions: Hong Kong and Shanghai. Reuters also reported that Beijing has actually allowed the firm to continue its IPO. The firm works to file a preliminary prospectus for the share sale in both Shanghai and Hong Kong. They argued that the plan should be ready as fast as next month.
However, CSRC argued that it did not conduct any assessment or research in regard to Ant’s IPO. Meanwhile, they receive full support from various qualified companies domestically and internationally. Ant is the fintech affiliate of Alibaba Group Holding, which denied the reports. The company argued that they focus on rectification work under the regulators’ watch. Thus, they might not have any plan for the listing.
Bankers working for Ant also denied the assessment. On the other hand, Alibaba’s shares fell 8.1% in the U.S. It follows the denial of 1.4% trading in Hong Kong. Basically, the IPO of Ant could be a strong potential for the market to ease the difficulties in the tech sector IPO. Although the country’s economy is now challenging due to Covid-19 lockdowns. However, Chinese officials announced that the government would fully support the listing development with a more regulated scenario.
