(Bloomberg) Shares of Chinese giant Alibaba Group Holdings Ltd. declined on Thursday, following Beijing’s denial that it is looking at reviving the initial public offering of Ant Group Co.
Alibaba shares fell by up to 5.3% at the opening of the session on Thursday, effectively erasing the 7% gain recorded in premarket trading when reports indicated a possible revival of the Ant IPO.
The decline comes as the China Securities Regulatory Commission denied such claims but noted that it backs internet platform companies to list both in China and overseas. Ant has also clarified that it has no plans for an IPO.
Analysts believe any reports indicating the revival of the Ant IPO are “too good to be true,” noting that there are a lot of concerns that need to be addressed regarding politics.
Ant was earlier set to go public in November 2020, but this was shelved after China started its regulatory crackdown focusing on the country’s internet sector.
A growing number of investors have been backing acquisitions of Chinese stocks in belief that now is the right time to buy.
BABA is down 6.22%, while MCHI is down 3.03%.
