Hong Kong IPO of JD.com’s Fintech Subsidiary Put on Hold by China’s Securities Regulator

96

The fintech subsidiary of e-commerce giant JD.com has been forced to delay its proposed USD$2 billion initial public offering (IPO) in Hong Kong due the withholding of approval by the Chinese securities regulator.

JD Technology applied with the China Securities Regulatory Commission (CSRC) for an offshore listing in late January, according to information from CSRC’s official website.

Sources said to Bloomberg that JD Technology originally planned to make filings with the Hong Kong Stock Exchange (HKSE) by the end of March, for a listing before the end of the year.

While JD Technology had already appointed banks to assist with the listing, CSRC has reportedly yet to issue its approval for a listing by the company in Hong Kong.

According to the sources Chinese regulators remain concerned about JD Technology’s consumer finance operations.

The postponing of the IPO comes following a fraught period for Chinese fintech companies, as well as a heavy-handed crackdown on Internet finance by risk-preoccupied regulators.

Ant Group’s saw its proposed IPO in November 2020 scuppered by Chinese authorities, who subsequently summoned executives from both Ant and other online platforms and fintech companies for disciplinary “regulatory discussions,” demanding that they curb risk in relation to their online finance operations.