Ant Group's document $ 34.5 billion IPO in Shanghai and Hong Kong has been suspended

An Ant Group logo can be seen at the company's headquarters in Hangzhou, Zhejiang Province, China on October 9, 2020.

Ding Junhao | Visual China Group | Getty Images

SHANGHAI, China – Ant Group's Shanghai and Hong Kong IPOs have been suspended.

The stock exchanges in Shanghai and Hong Kong announced this on Tuesday. Alibaba, which has a stake of around 33% in the Ant Group, posted a price decline of over 8% in pre-market trading.

Ant Group controller Jack Ma, chairman Eric Jing and CEO Simon Hu were summoned and interviewed by regulators in China on Monday, according to a statement from the China Securities Regulatory Commission.

In a statement on Tuesday, the Shanghai Stock Exchange referred to that meeting to explain why it has suspended its IPO.

"Recently, the actual controller, chairman and general manager of your company were jointly summoned and questioned by the relevant regulatory authorities," read a CNBC translation of their Mandarin comments.

"Your company has also reported important issues, such as changes in the regulatory environment for financial technologies. These issues could prevent your company from complying with the information listing or disclosure requirements."

As a result, the Shanghai Stock Exchange decided to suspend the company's listing on the Science and Technology Innovation Board, also known as the STAR Market. This is China's Nasdaq-esque, tech-heavy market.

Shortly thereafter, the Ant Group issued a statement that the listing of Hong Kong shares will also be suspended.

Ant Group was preparing to raise nearly $ 34.5 billion on the world's largest public listing. A double listing in Shanghai and Hong Kong was planned for November 5th. It is currently unclear whether the stage in Hong Kong will go as planned.

An Ant Group spokesman was not immediately available for comment. Official filing with the Shanghai Stock Exchange is expected shortly.

On Monday, China's central bank and regulators issued new draft rules on online microloans that could affect the Ant Group.

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