Retail investors bitten by Ant Group IPO’s blocking

hong kong — Mom-and-pop investors who put in bids worth a record $3 trillion in China’s Ant group — equivalent to Britain’s annual economic output — were stunned after regulators abruptly suspended what would have been the world’s largest stock market debut.

China blocked the fintech giant’s $37 billion listing on Tuesday, thwarting its debut in Hong Kong and Shanghai scheduled for Thursday and dealing a severe blow to the company founded by billionaire and Alibaba cofounder Jack Ma.

The suspension followed a Monday meeting between China’s financial regulators and Ant executives, including Ma, who were told the company’s lucrative online lending business would face tighter scrutiny, sources told Reuters.

“I feel like I made a very wrong decision,” said 21-year-old Hong Kong resident and Cambridge student, Vincent Tse, who applied for 2,000 shares worth around HK$160,000 ($20,640) which he earned doing a part-time job.

“This situation really reveals a deep problem in the Chinese market and shows a lack of experience in holding such a large IPO,” Tse said, adding that he would no longer invest in Ant and reinvest in US, European or Japanese markets.

In China, investors cited the changing business environment as a key factor weighing on Ant’s future development with some saying they would still be keen to invest.

“I’d probably invest again just because of the sheer size of the market share Ant Financial has,” said a 21-year-old student investor in Beijing who goes by the name Clementine.

Ant apologised to investors for any inconvenience, adding it would give further details on the suspension of its listing and applications for refunds.

“It’s a joke on the Chinese stock exchange,” said a 37-year-old secretary who wanted to be known only as Olivia, in reference to the Shanghai bourse disqualifying Ant from listing.

“If Ant lists again, I’m not sure I’ll subscribe again because if its business model changes then it might be less attractive than before.” —