Chinese Regulators Add More Hiccups for Ant IPO

The much anticipated blockbuster listing of Chinese fintech giant Ant continues to face obstacles, this time from mainland regulators claiming a conflict of interest with its payment arm Alipay.

The China Securities Regulatory Commission (CSRC) is looking into Alipay’s role over concerns of a potential conflict of interest, according to a «Reuters» report citing unnamed sources.

Alipay was allegedly the only third party channel which allows access to the five Chinese mutual funds investing in the IPO.

The efforts have proven effective as the channel has lured more than 10 million retail investors into the five mutual funds that were launched in late September, creating an alternative to traditional channels like banks and brokerage houses.

According to the report, the probe is not expected to derail the IPO though it has delayed plans for its Shanghai listing already as Ant had hoped to obtain CSRC approval last month.

And in Hong Kong, where Ant will conduct the other leg of its dual listing, progress was also slowed with original plans for a September 24 hearing with the local bourse’s listing committee and an official IPO after the Chinese National Day holiday that ended on October 8. Sources claim that Ant is aiming for a Hong Kong hearing in the coming days.

Separately, Republican senator Marco Rubio called for the Trump administration to take a serious look at delaying Ant Group’s IPO, adding that it was outrageous that Wall Street is rewarding the Chinese Communist Party’s blatant crackdown on Hong Kong’s freedom and autonomy.