Alibaba Plunges After Exchanges Halt Ant Listing

Shares in Alibaba plunged by more than 9% in early trading in New York this morning after exchanges in Shanghai and Hong Kong suspended the expected dual listing of its financial services affiliate Ant Group on Nov. 5.

The listings, which followed a world record-setting Ant IPO, were halted after China regulators found that “Ant Group may not meet listing qualifications or disclosure requirements,” according to an Alibaba filing in the U.S. and Hong Kong today. The surprise suspension was announced at the Shanghai Stock Exchange and then followed by Hong Kong. (Click here for Alibaba’s filing.)

Main Alibaba founder’s Jack Ma and Ant leaders were summoned to Beijing this week to meet with financial officials after the iconic China Internet billionaire criticized regulators for stifling innovation.

Ant’s nearly $35 billion IPO and listing would have created at least 18 other billionaires besides Ma and added to Ma’s own fortune, based on pricing announced by the company last month.

The offering has been seen as underscoring China’s growing clout in that fast-growing field of online finance and ascent in international capital markets at a time when Chinese authorities are promoting listings to help boost key technology industries such as semiconductors and close a gap with the United States.   

@rflannerychina