Dividends and Investors value Ant Group at more than $200 billion after IPO halt, sources say

The biggest company on the China stock market is Alibaba Group which is controlled by Jack Ma. Alibaba Group has similarities to Amazon, but it owns a fintech called Ant Group. The company was going to an IPO or stock listing but the Chinese government under pressure of banks it owns stopped the IPO. The Chinese Government said Ant Group has to be regulated similar to a bank including having the necessary deposits. This changed stopped the Ant Group from going public and Ant Group said it would comply with the government.

In an article by Julie Zhu and Kane Wu of Reuters, Ant Group will soon be going public but not at the valuations in November. At that time it was valued at $315 billion and the new valuation will be $200 billion.

Even thought the company was going through a different valuation, Ant Group says its business was little affected. Ant Group is the biggest lender in China of small loans and to small business.

In late 2020, Warburg Pincus valued the company at $220 billion and sold some of its holdings at the $190 billion valuation.

Linking to dividend paying stocks, government regulations often help these stocks because the government knows what they are getting and make it more difficult for new companies to break into the business. Government regulations can help some companies and hurt others, when you consider the government in power try to ensure the regulations help your investment industry.

There are more questions than answers, till the next time – to raising questions.

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