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Charles Li, chief executive of Hong Kong Exchange and Clearing (HKEX) was “disappointed” to see the suspension of Ant Group’s $ 37 billion initial public offering, he told CNBC on Wednesday.
In a dramatic move, Chinese regulators halted Ant’s share debut just days before the company went public on Nov. 5 in Shanghai and Hong Kong, citing “major problems” with the listing.
“When you see a large and unprecedented transaction suspended like that, you have strong mixed feelings,” Li said.
“On the one hand, I was very disappointed to see that the transaction was postponed and suspended at the last minute,” he said. “But on the other hand, I am also quite relieved in the sense that new regulations are going to emerge and become the definition of regulatory changes in the landscape.”
Ant Group, Alibaba’s fintech subsidiary backed by Jack Ma, runs Alipay, which is one of the most popular mobile payment systems in China.
Li spoke with CNBC’s Emily Tan as part of the annual East Tech West conference, which is being held both remotely and on the ground this year in the Nansha district of Guangzhou, China.
Market swings are likely to continue
Rather than rushing to listing against an uncertain backdrop and potential market turbulence, Li said it was better “to let the regulatory situation calm down and clarity return so we can do it again.”
Li, who will leave the HKEX at the end of this year, was confident that the setback would not deter Ant from returning to the market soon.
HKEX CEO Charles Li speaks during a press conference after a listing ceremony on the Hong Kong Stock Exchange (HKEX) on October 10, 2019.
China News Service | fake images
“I cannot speak on behalf of the company and I should not comment on specific communications either. But we have a strong dialogue on very important transactions like this. I have no doubt in my mind that a large company like that will soon be back on the market,” he said. , refusing to give a deadline.
Global markets are undergoing big changes due to Covid-19, as well as a new US presidential administration under Joe Biden taking office in January, and Li expects the turbulence to “continue for a while” more.
When asked what he will do after leaving HKEX, he said: “I have a clear idea of what to do. I can’t embark until I have formally handed over the next new leader. But it won’t be too far from what I’m good at.”
