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(Nov. 3): US-listed shares of Alibaba Group Holding Ltd fell as much as 9.7% on Tuesday after Ant Group Co, the financial subsidiary also founded by Jack Ma, said its listings in Shanghai and Hong Kong had been suspended.
Ant’s listing in Shanghai was halted amid changes in the regulatory environment, according to a statement, which did not provide further details. With the initial public offering in Hong Kong also on hold, Ant’s $ 35 billion sale of shares is in limbo.
Alibaba owns about a third of the payments company, which was expected to go public on both exchanges on Thursday. Its US deposit receipts fell the most intraday since March 16.
The surprise move in China is raising questions from investors about whether a broader regulatory change could be underway. Other Chinese companies trading in the United States also fell on Tuesday. JD.com Inc fell 1.4%, while Lufax Holding Ltd fell 8%. IQIYI Inc fell 1.5% and LexinFintech Holdings Ltd fell 5%.
Ma had antagonized some in China with a speech that accused regulators of restricting innovation. Chinese officials called the billionaire and his lieutenants in Ant to a meeting and warned them that the company would face regulatory scrutiny similar to that of banks.
Andrew Left, founder of Citron Research, said the suspension of Ant’s listing could be an isolated and temporary setback. “Hopefully this is a short-term hit,” he wrote in an email.
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