The fintech unit of Chinese e-commerce giant JD.com is expected to withdraw its plans for an initial public offering (IPO) this year amidst greater regulatory pressure on China’s Internet lending platforms.
JD Technology (formerly JD Digits), is considering the withdrawal of its application for an IPO on Shanghai’s NASDAQ-style STAR Market board, according to a report from the South China Morning Post.
In January JD.com merged JD Digits with its artificial intelligence and cloud computing units to form JD Technology (京东科技子集团).
JD Technology originally hoped to raise around 20 billion yuan (approx. USD$3 billion) via a listing on the Shanghai bourse. Sources said to SCMP that JD Technology now has doubts about the IPO due to “changing business circumstances.”
The moves comes just months after the cancellation of the long-awaited IPO of Chinese fintech unicorn Ant Group, which was originally scheduled for early November 2020.
Analysts say that Chinese regulators scuppered Ant Group’s proposed listing on the Hong Kong and Shanghai bourses due to concerns over risk in relation to online lending practices.