How Badly Will the Ant Group IPO Debacle Hurt Alibaba Stock?
Alibaba's (NYSE: BABA) stock recently tumbled after Chinese regulators derailed the public debut of its fintech affiliate Ant Group. Alibaba holds a 33% stake in Ant, which owns the digital payments platform Alipay.
Ant's stock listing in Shanghai and Hong Kong was suspended after Jack Ma, Alibaba's co-founder and one of Ant's top investors with an 8.8% stake, delivered a controversial speech at a government forum on Oct. 24.
Ma criticized China's financial regulators, claimed many of the country's banks operated like "pawn shops" with their collateral standards, and he declared that China needed a new financial platform that would extend credit to lower-income customers who lacked sufficient collateral.
Source Fool.com
