The Ant Group suspended its listing, and everyone was surprised.
Most of the breaking news is actually doomed.
First look at the prospectus of Ant Group.
When the investment bank brothers wrote this risk reminder, they probably never expected it to be so fast.
There is a sentence in it: "Faced with the new regulations and regulatory environment, the company cannot guarantee that it can always make timely adjustments to its business to meet compliance requirements. For this reason, the company may increase costs and expected business growth may also be affected. "
Your taste, your fine taste, is there a kind of arrogance to the market?
I don’t know if investors who are enthusiastic about fighting new ants, if they look at this place seriously, will their backs get cold?
According to Murphy's law, the more improbable things happen, the more they happen.
Just before Ant Group is waiting to go public, new regulations and regulatory environment are coming.
On November 2, the China Banking and Insurance Regulatory Commission and the Central Bank jointly issued the "Interim Measures for the Administration of Online Small Loans (Draft for Solicitation of Comments)". There is one item directly related to the main business of Ant Group: in a single joint loan, the operation of small online loans The proportion of capital contribution of small loan companies for loan business shall not be less than 30%.
The draft opinion also sets a red line on the upper limit of the financing leverage of online small loan companies.
In the past, the Ant Group used to accumulate itself in technology companies, and there was regulatory arbitrage.
However, as supervision deepens the understanding of financial technology, the regulatory fence is tightening.
Fintech is essentially a technology-driven financial innovation activity.
Whether it is called financial technology or technology finance, you must never forget the financial attributes, and you must not violate the basic laws of financial operations.
Therefore, the management attributes of financial technology companies have undergone major changes in supervision, and financial services should be included in the scope of financial supervision according to their business attributes, and there is no extra-legal place.
Will this affect the speed and profitability of ants making money?
Will such a major change affect the valuation of Ant Group's stock?
So before going public, should it stop?
According to the pre-listing pricing, the market value of Ant Group will reach 313 billion US dollars.
But once listed, the company's financial model and business model need to be re-drawn.
On the evening of November 3, the Shanghai Stock Exchange issued a decision to suspend the listing of Ant Technology Group Co., Ltd. on the Science and Technology Innovation Board.
The reason for the suspension of listing is very clear: this major event may cause the company to fail to meet the issuance and listing conditions or information disclosure requirements.
The legal basis is also clear: in accordance with Article 26 of the "Regulations for the Registration and Management of Initial Public Offerings on the Science and Technology Innovation Board (for Trial Implementation)" and Article 60 of the "Shanghai Stock Exchange Rules for the Review of Stock Issuance and Listing" and other provisions, the sponsor will be consulted According to the opinion, this Exchange has decided to suspend listing of your company.
So, what do the specific provisions say?
First, if a major event occurs before stock issuance and listing, the issuer and its sponsor shall report to the exchange in a timely manner and update the issuance and listing application documents as required; the issuer’s sponsor and securities service agency shall continue to perform due diligence Responsibilities and submit special verification opinions to the Exchange.
Second, after the listing committee’s deliberation and before the stock’s listing and trading, a major event has occurred that has a major impact on whether the issuer meets the issuance conditions, listing conditions or information disclosure requirements, the issuance and listing review agency of the exchange will decide whether to re-examine after re-examination. Submit to the Listing Committee for deliberation; if resubmitted to the Listing Committee for deliberation, it shall report to the Securities Regulatory Commission.
Third, after the CSRC makes the registration decision and before the stock is listed and traded, if a major event occurs that may cause the issuer to fail to meet the issuance conditions, listing conditions or information disclosure requirements, the issuer shall suspend the issuance; if the issue has already been issued, the listing shall be suspended; If the issuer is found to have the above-mentioned circumstances, it has the right to request the issuer to suspend listing.
In addition, the Ant Group’s listing registration approval published online has also clarified that, from the date of approval of the registration to the end of the stock issuance, if the issuer has major issues, it should promptly report to the exchange and deal with it in accordance with relevant regulations.
Legal experts said that the Shanghai Stock Exchange’s suspension decision is based on law.
The "Science Innovation Board IPO Measures" and the "Science Innovation Board Listing Rules" have long been announced, which are legitimate, stable, fair, and predictable.
Before Ant Group can handle the major matters before listing, the Shanghai Stock Exchange needs to perform its self-regulatory responsibilities, stand on guard, put guards on guards, and guard the public investors.
When major events occur, if there are no relevant explanations, relevant treatments, and relevant plans, and once the business model needs to be adjusted, the company's valuation may undergo major changes and the stock price may fluctuate significantly.
This will not only directly affect the interests of investors, but also impact the sustainable development of the company.
Therefore, in order to better safeguard the rights and interests of financial consumers, safeguard the interests of investors, and maintain the long-term and healthy development of the capital market, the listing is suspended.
On the other hand, it also takes into account the continued and healthy development of the company after its listing.
Rush to go public, it is better to go public after solving major issues, which will be more beneficial to the development of the company.
Thorough digestion of regulatory risks and market risks in advance will help enhance the company's transparency and credibility.
At the same time, it will also enhance investor confidence and form an investor-friendly listed company.
It is in this sense that the suspension of listing of Ant Group has implications for the majority of enterprises.
As one netizen said:
Source/Economic Daily News Client (Author Jin Guanping)