Jack Ma faces Ant Group overhaul after China regulators halt IPO

Measures imposed by Beijing likely to dampen profitability and rein in growth

Jack Ma, controlling shareholder of Ant Group, speaks in Shanghai on Oct. 24 at an event where he criticized financial regulation in China. © AP

NARAYANAN SOMASUNDARAM and NIKKI SUN, Nikkei staff writers

November 4, 2020 17:01 JST

Updated on November 4, 2020 17:42 JST

HONG KONG -- Jack Ma's Ant Group is being forced by Beijing into a comprehensive overhaul after a significant tightening of regulations around China's top online financial platform halted plans for the world's largest initial public offering.

Ant, which was set to raise up to $39.6 billion this week in Shanghai and Hong Kong, will have to boost capital and liquidity buffers at key units which make small loans online, a vital part of its business. The measures could dampen the company's profitability and slow its growth.