Under the redemption program, the fund managers including China Universal Asset Management and E Fund Management will grant subscribers the option to pull their money within a month starting from November 23, as The South China Morning Post reported today.
Under the original plan, investors agreed to “lock up their money” for 18 months, according to The Wall Street Journal. Considering restrictions by Chinese regulators, each of the five funds informed investors that it may invest as much as 10% of its assets in Ant Group.
But with Ant’s mega $39.67 billion IPO getting suspended over regulatory concerns just days before the trading debut, investors were refunded their money. The Jack Ma controlled fintech giant attracted a cumulative $3 trillion from retail investors from both Hong Kong and Shanghai.
Meanwhile, Ant is facing a bigger problem. Beijing has issued draft rules that could slow the growth of Chinese firms using monopoly practices to dominate the markets. Ant, which operates one of China’s top mobile payment apps Alipay, could see its $280 billion valuation split in half, according to Bloomberg, citing analyst estimations. The news outlet has also reported that Chinese tech giants including Tencent (HKEX: 00700; OTC: TCEHY) and Alibaba (NYSE: BABA; HKEX: 09988) have lost nearly $290 billion of market value over the last two days.
At the close of trading in Hong Kong Wednesday, the stock in Alibaba tanked nearly 10% to HK$248.40 per share, while Tencent plunged 7% to HK$551 per share.
In New York, shares in Alibaba were trading up $2.09, at $268.51 per ADS, in the afternoon.