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Would-be investors in shares of Ant Financial, billed as the world's largest initial public offering, were rattled by an abrupt decision by Chinese regulators to cancel the flotation. © Reuters

China investors rethink market risk after Ant's scuppered IPO

Lure of big returns remains despite unwelcome reminder of Beijing's power

HONG KONG -- Global investors are taking two distinct messages from the sudden termination of Ant Group's initial public offering -- billed as the world's largest -- by Chinese regulators.

First, controlling financial risk in the world's No. 2 economy is clearly a top priority for Beijing. Second, a transparent regulatory environment of the sort needed to make Shanghai into a premier financial center remains a work in progress.

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