Ant Group Selects China for IPO

Issue 28

07.20.20 - Ant Group announced on Monday that it is planning "a concurrent initial public offering" in Hong Kong and on Shanghai's Star Market, China's answer to the Nasdaq while giving a cold shoulder to Wall Street where Chinese companies are facing heightened scrutiny because of rising geopolitical tensions.

The move is a boost of confidence for Hong Kong. The city's status as Asia's financial hub is in doubt after Beijing imposed a controversial national security law on Hong Kong. Ant's announcement coincided with news that the Hang Seng will get a new index to track the 30 largest tech firms that trade in Hong Kong. Ant would very likely be included.

Ant is closely affiliated with the Chinese e-commerce giant Alibaba, which raised a record $25 billion when it debuted on Wall Street in 2014 — still the world's second-largest IPO to date. Ant owns Alipay, one of the most popular payment apps in China, and also offers online financial services such as loans, investments and credit scoring systems. The Hangzhou-based company is worth an estimated $150 billion.

Source: New York Times