Ant Group’s IPO reportedly faces delays as Chinese regulator conducts a probe

According to the guidelines of the China Securities Regulatory Commission (CSRC), effective October 1, “mutual fund distributors should avoid conflicts of interest from selling products related to their other existing and potential businesses.”

However, Ant Group’s payment platform Alipay acts as the only third-party agency for retail investors looking to buy into the five Chinese mutual funds investing in the IPO, a source told Reuters, adding that CSRC’s probe has delayed Ant’s plan.

Launched late last month, the five funds have raised US$8.93 billion from more than 10 million retail investors, selling out within days.

Alibaba’s affiliate Ant Group is seeking to raise US$35 billion in a dual listing in Hong Kong and Shanghai as early as this month.

It originally intended to hold a hearing with Hong Kong’s Listing Committee on September 24 and then launch the IPO after the week-long Chinese National Day holiday, which ended on October 8, sources told Reuters. One of them added that the fintech firm is now aiming to have the hearing with the Hong Kong exchange in the coming days.