Jun 9, 2022 - Economy & Business

China's tech crackdown begins to loosen up

Illustration of a hand holding a magnet attracting large amounts of Yuan.

Illustration: Aïda Amer/Axios

China's financial regulators have begun early talks about allowing Ant Group to revive its IPO, which would occur in both Shanghai and Hong Kong, per multiple reports.

Why it matters: First, because Ant Group had expected to price the largest global IPO of all time, before being pulled in late 2020.

  • Second, this reflects an easing of tensions between the Chinese government and its homegrown tech giants, following news that ride-hail company Didi is nearing the end of a cybersecurity probe that caused its app to be pulled from domestic app stores.
  • Third, it could presage a revival of China's IPO market.

More from Bloomberg: "While the timeline for an Ant license and its potential listing would hinge on approvals from senior Chinese leaders, evidence of progress on both fronts is likely to reinforce investor optimism that the worst is over for the country’s embattled private sector."

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