China considers reactivating the IPO of Ant Group, owned by Jack Ma

June 9, 2022 | 1:39 p.m.

Chinese financial regulators have started the first talks about a possible revival of the initial public offering (IPO) of Ant Groupreported BloombergNewsciting sources familiar with the matter.

The China Securities Regulatory Commission (CSRC, for its acronym in English) detailed in a statement that it had not carried out any evaluation or investigation work in relation to the IPO of Ant.

Previously, Bloomberg stated that the regulator formed a team to reassess plans for sale of shares of the fintech giant, which is controlled by billionaire Jack Ma.

Prior to the announcement of this report, the US-listed shares of Alibaba, which owns nearly a third of Ant, rose to 4%; however, and until 1:00 p.m., operations fell 6.24% with a value of 112.15 dollars.

Keep reading: Alibaba surges more than 12% after raising share buyback plan to $25bn

China suspended deal in 2020 for IPO

Ant had planned a record IPO of $37 billion in Shanghai and Hong Kong in November 2020, before China abruptly called off the deal days before the shares began trading.

The derailment of the IPO marked the beginning of a regulatory crackdown to curb the growth of Chinese technology sector and the possible reactivation of the sale of shares would be a clear sign of a thaw in relations.

Chinese regulators are wrapping up investigations into the trucking giant Didi Global Inc.. and two other companies and are preparing to allow their apps to return to national app stores as soon as this week, The Wall Street Journal reported Monday.

This report, which cites unidentified people familiar with the matters, was taken as the latest signal to investors that official promises to ease pressure on the Internet sector from China they may be gaining ground.

With information from Reuters

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China considers reactivating the IPO of Ant Group, owned by Jack Ma