News: Timeline: Events leading up to Ant Group CEO Hu’s departure.
(Reuters) – Ant Group CEO Simon Hu resigned unexpectedly on Friday as the financial technology giant undertook a regulatory overhaul following its submerged IPO.
The following are important events that led to his departure.
OCT. 21: ANT IPO RECEIVES GREEN LIGHT FROM THE SECURITY REGULATOR
Ant Group receives the final nod from China’s leading securities watchdog to register its IPO in Shanghai, clearing the final regulatory hurdle for its issuance.
OCT. 24: ‘OLD MAN’S CLUB’
At a public event attended by Chinese regulators, Ant billionaire founder Jack Ma said that the financial and regulatory system must stifle innovation and reform to fuel growth. He also likened the Basel Committee of Global Banking Supervisors to an “Old Man’s Club”.
OCT. 30: MOM AND POP INVESTORS OFFER $ 3 trillion in stocks
Retail investors are offering shares of Ant under the double listing of Ant valued at $ 3 trillion, equivalent to the UK’s annual gross domestic product, as they rely on demand for Ant’s financial technology services in China.
NOV. 2: CONTROLLER CANCEL TALK TO ANT
Four of China’s top financial regulators said they had regulatory talks with two senior executives from Ma and Ant. Chinese regulators recommend stricter rules for online micro-loan companies to contain potential financial risks and curb rising debt.
NOV. 3: SHANGHAI IPO SUSPENDED, ANT FREEZES HK IPO
The Shanghai Stock Exchange is suspending Ant’s IPO in its tech-driven STAR market, citing the regulatory talks as a “major event” and a tougher regulatory environment as factors that could exclude Ant from listing. The move causes Ant to freeze the Hong Kong leg of its double listing as well.
DEC. 27: CHINA PUSHING AND OVERTAKING THE GROUP
The Chinese central bank has asked Ant to disrupt the credit and other consumer finance businesses.
FEB. 3, 2021: ANT AGREED RESTRUCTURING PLAN
Ant Group is negotiating a restructuring plan with Chinese regulators to become a financial holding company, according to one person with direct knowledge.
FEBRUARY 4: ANT TO HIVE FROM CONSUMER CREDIT
Ant Group plans to outsource its consumer credit data activities, experts say, a concession to regulators that could help restart massive public stock sales.
MARCH 2: EMPLOYEES ON SALE OF THE COMPANY’S SHARES
According to Ant’s chief executive officer, the group is working on measures to help employees with “short-term liquidity problems” after the IPO suspension dashed employees’ hopes of redeeming their shares.
MARCH 12: HU RETURNS AS CEO, ERIC JING TAKES OVER
CEO Simon Hu resigns unexpectedly, the first exit from top management since the $ 37 billion IPO.
Compiled by Emelia Sithole-Matarise in London. Editing by Mark Potter
Original Source © Reuters