What’s new: China Securities Regulatory Commission (CSRC) Vice Chairman Fang Xinghai said that when Ant Group Co. Ltd. will list “depends on how the government restructures our regulatory framework in terms of financial technology and also depends on how the company reacts to the changing regulatory requirements.”
Fang made the comments Tuesday morning Beijing time at the Bloomberg New Economy Forum.
What’s the background: The abrupt suspension of Ant Group’s potentially record-shattering $34.5 billion IPO in Shanghai and Hong Kong earlier this month has sent shockwaves through the fintech industry, as China is poised to lay out a stricter regulatory framework.
The shockwaves are expected to spread far beyond Ant Group and affect other fintech companies weighing IPOs. They include JD Digits, the fintech arm of JD.com Inc., which in September issued a prospectus for a 20 billion yuan ($3 billion) offering in Shanghai, eyeing a valuation of 200 billion yuan.
The new draft rules governing China’s booming online microlending industry are expected to force out a majority of companies by introducing stricter capital requirements. China has hundreds of online microlenders with interprovincial operations, but only four of them currently meet the draft minimum capital requirement, according to public business records.
Related: Cover Story: Why Ant Group’s IPO May Stay on Ice for a While
Contact reporter Timmy Shen (hongmingshen@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)
