{"id":1500,"date":"2021-05-19T05:44:33","date_gmt":"2021-05-19T05:44:33","guid":{"rendered":"http:\/\/tablutech.co.mz\/?p=1500"},"modified":"2021-09-27T05:56:56","modified_gmt":"2021-09-27T05:56:56","slug":"chinas-fintech-giants-are-hitting-roadblocks-in-planned-listings-at-home","status":"publish","type":"post","link":"https:\/\/tablutech.co.mz\/pt\/2021\/05\/19\/chinas-fintech-giants-are-hitting-roadblocks-in-planned-listings-at-home\/","title":{"rendered":"China\u00e2\u20ac\u2122s fintech giants are hitting roadblocks in planned listings at home"},"content":{"rendered":"
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Months after the\u00a0sudden suspension of Ant Group\u2019s highly-anticipated dual listing<\/a>, China\u2019s financial technology companies are facing difficulties trying to go public in the mainland, analysts told CNBC.<\/p>

According to EY\u2019s Asia-Pacific IPO leader, Ringo Choi, few firms in the fintech sector have managed to list on mainland exchanges in Shanghai and Shenzhen.<\/p>

\u00a0<\/div><\/div>

\u201cFor financial technology, you can see that … some of the largest one(s), if they\u2019re competing with the bank or insurance company, they will have a hard time,\u201d Choi told CNBC.<\/p>

Last Friday, the\u00a0China Securities Regulatory Commission announced<\/a>\u00a0a series of updated guidelines for companies seeking to list on the Shanghai\u2019s STAR market \u2014 the Nasdaq-style tech board officially known as the\u00a0Shanghai Stock Exchange\u00a0Science and Technology Innovation Board.<\/p>

One of the guidelines was that financial technology companies were banned from listing on the STAR board. \u201cReal estate and firms mainly engaged in financial services and investment businesses are prohibited from listing on the Science and Technology Innovation Board,\u201d the CSRC said in the release.<\/p>

The latest development presents yet another obstacle for Chinese fintech companies looking to list on the mainland.<\/p>

It comes weeks after Chinese e-commerce giant\u00a0JD.com<\/a>\u00a0withdrew the planned listing of its financial technology arm on the STAR market.<\/p>

\u00a0<\/div><\/div>

The current IPO climate is a stark contrast to the\u00a0situation less than six months ago<\/a>, when a slew of Chinese start-ups were planning to list domestically. One such listing was the highly-anticipated public debut of Alibaba-affiliate Ant Group \u2014 poised at that time to become the world\u2019s largest IPO.<\/p>

Ant\u2019s planned listing \u2014 set to take place in both Shanghai and Hong Kong \u2014 was abruptly shelved<\/a>\u00a0days before the debut after top executives including its founder and controller, Jack Ma, were summoned by Chinese regulators for questioning.<\/p>

The unexpected suspension largely marked a turning point in Beijing\u2019s stance toward its domestic technology giants including fintech firms, which had enjoyed largely unencumbered growth for years.<\/p>

\u201cThe sentiment for this sector face(s) some questions,\u201d Bruce Pang, head of macro and strategy research at China Renaissance Securities (Hong Kong), told CNBC.<\/p>

He said firms in the financial technology sector are now looking toward Ant\u2019s \u201crectifications\u201d of its business as an \u201cexample\u201d for others that are looking to list on the mainland.<\/p>

Earlier in April, Chinese regulators ordered Ant \u2014 which runs the massively popular mobile payments app Alipay in China \u2014 to revamp its business. Reuters reported over the weekend that the fintech powerhouse is exploring options for its founder Ma to divest his stake and give up control \u2014 but Ant swiftly denied those claims as \u201cuntrue and baseless\u201d in a post from its official Twitter account.<\/p>

Looking elsewhere<\/h2>

Financial technology firms that are currently facing a \u201cclosed door\u201d trying to raise capital on the STAR board may seek listings elsewhere, said Pang.<\/p>

The U.S. and Hong Kong are still viable options for Chinese financial technology firms looking for alternative destinations to go public, according to the analysts.<\/p>

One example of a Chinese fintech firm that has successfully listed outside the mainland is\u00a0Lufax<\/a>, which\u00a0had a U.S. IPO in late 2020<\/a>.<\/p>

The Securities and Exchange Commission will likely \u201cgive a pass\u201d to Chinese firms wanting to list in the U.S. as long as the companies are able to meet the requirements of full disclosure, said EY\u2019s Choi. As for Hong Kong, the process may be \u201cmore stringent,\u201d but they still have a chance to go public too if the requirements are met.<\/p>

Still,\u00a0potential delisting concerns for Chinese firms stateside may<\/a>\u00a0weigh on investor sentiment. Under a new law passed by the administration of\u00a0Donald Trump<\/a>, the SEC can stop the trading of securities that fail to meet its auditing requirements.<\/p>

Source<\/a><\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

Months after the\u00c2\u00a0sudden suspension of Ant Group\u00e2\u20ac\u2122s highly-anticipated dual listing, China\u00e2\u20ac\u2122s financial technology companies are facing difficulties trying to go public in the mainland, analysts told CNBC. According to EY\u00e2\u20ac\u2122s Asia-Pacific IPO leader, Ringo Choi, few firms in the fintech sector have managed to list…<\/p>","protected":false},"author":1,"featured_media":1501,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-1500","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-weshare"],"_links":{"self":[{"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/posts\/1500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/comments?post=1500"}],"version-history":[{"count":7,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/posts\/1500\/revisions"}],"predecessor-version":[{"id":1666,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/posts\/1500\/revisions\/1666"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/media\/1501"}],"wp:attachment":[{"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/media?parent=1500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/categories?post=1500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/tags?post=1500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}