Boston’s Fidelity halves Ant Group valuation to $144bn after China crackdown

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Boston’s Fidelity halves Ant Group valuation to $144bn after China crackdown

Fidelity Investments, the Boston, Massachusetts-based American multinational financial services provider, had halved the valuation of its shares in China’s Ant Group following major regulatory crackdowns over recent months.

In point of fact, a Wall Street Journal report published earlier on Monday had quoted regulatory filings as saying that the Boston-based investment corporation, Fidelity Investments, employing more than 50,000 employees across the globe, had valued the Jack Ma-founded Alibaba’s fintech arm Ant Group at $144 billion as of February 28, 2021, compared to an appraised valuation of $295 billion at the end of August 2020.

Fidelity halves Ant Group valuation at $144 billion

Although, neither Fidelity nor Ant Group had commented over the subject-matter while being asked over the issue, but the latest move from Fidelity to halve the shares’ prices it held in Alibaba’s fintech arm, Ant Group, comes over the heels of a raft of regulatory crackdowns on the Alipay owner, while Chinese regulatory authorities including the People’s Bank of China (China’s Central Bank), had asked Ant Group to restructure as a banking holding in April this year, which analysts had claimed could dent Ant’s appeal considering the capital requirements alongside a lower growth prospect of a banking institute.

Apart from that, Ant Group had been hit with a major stumbling block back in October last year, when its slated $37-billion dual listing in mainland Shanghai and Hang Seng was put on hold over regulatory concerns shortly after the group’s founder Jack Ma had called for reforms in Chinese regulatory system.

However, according to Fidelity’s regulatory filings revealed earlier in the day, the business investment and research group’s reported valuation for Ant Group could not have contemplated the impact of Ant Group’s revamp as a banking holding announced in April 2021, though, taking account of Ant Group's latest reform, the group's valuation could plunge as low as to $108 billion, suggested analysts.