The Shanghai Stock Exchange and Hong Kong Stock Exchange have suspended Ant Group's A-share IPO on its STAR Market, which was initially set for Thursday (October %), the exchanges said on Tuesday.

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Following Shanghai's move, reports suggest that the Hong Kong Stock Exchange too suspended the IPO.

Ant Group recently reported to China's securities regulator about the significant changes in the regulatory environment, the exchange said, and this development might make Ant Group fall short of listing requirements on information disclosure, the Shanghai stock exchange said in a statement, reports said.

Ant was set to go public in Hong Kong and Shanghai on Thursday after raising about $37 billion, including the greenshoe option of the domestic leg, in a record public sale of shares.

Explaining the move, Shanghai stock exchange said in a statement (according to a CNBC translation):

“Recently, your company’s actual controller, chairman and general manager have been jointly summoned and interviewed by the relevant regulatory authorities.”

“Your company has also reported significant issues such as the changes in financial technology regulatory environment. These issues may result in your company not meeting the conditions for listing or meeting the information disclosure requirements.”

Shortly after, Ant Group said in a statement that Hong Kong has also suspended its IPO.

China's top financial regulators summoned Ant Group Co Ltd's founder Jack Ma and two top executives to a meeting on Monday during which they told the that the company's lucrative online lending business faces tighter government scrutiny, sources told Reuters.

Note: This article has been updated to incorporate latest developments.

(Edited by : Abhishek Jha)

First Published:Nov 3, 2020 6:56 PM IST