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Innovation and intellectual property
Reuters staff
BEIJING (Reuters) – The decision to suspend Ant Group’s planned initial public offering in China was based on a comprehensive consideration of safeguarding the interests of consumers and financial investors, a senior central bank official said Friday.
China halted its $ 37 billion listing on Tuesday, hindering the world’s largest stock exchange debut just days after the end of a dramatic blow to financial technology and online consumer lending company founded by billionaire Jack Ma.
The move comes amid broader efforts by Chinese policymakers to prevent systemic financial risks and curb the rise in debt. It threw the company and its investors into a tailspin and its executives are now racing to meet stricter regulations.
“The decision was made in accordance with laws and regulations … and to maintain stable and healthy long-term market development,” Liu Guoqiang, deputy governor of the People’s Bank of China (PBOC), told reporters.
During the press conference, Liang Tao, vice president of the China Banking and Insurance Regulatory Commission (CBIRC), echoed Liu’s point of view.
“The CBIRC also supports this decision made by the Shanghai Stock Exchange,” Liang said. “Any listed company must comply with the requirements of relevant laws and regulations.”
Liang and Liu’s remarks were the two regulators’ first public remarks on Ant’s IPO suspension.
Ant was to make its market debut on Thursday in Hong Kong and Shanghai.
Liang also said CBIRC hopes all corporate entities “remain compliant with laws and regulations when doing business and cooperating” with Ant.
“We encourage the financial sector to explore sensible innovation by putting risks under control,” Liang told reporters.
“At the same time, we will regulate fintech based on its financial nature and include all financial assets in the regulatory framework.”
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