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The bright side of Ant Group's fine

Lucinda Shen

Photo by VCG/VCG via Getty Images

Ant Group was fined close to $1 billion by Chinese regulators today, giving hope that the crackdown on the company has finally come to an end.

Why it matters: This action revives hopes of an eventual IPO for Ant, once considered the world's most valuable startup, with a $300 billion valuation.

Driving the news: Financial regulators fined Ant Group 7.12 billion yuan ($984 million), citing violations in consumer protection and corporate governance.

  • Shares of Alibaba jumped 6% in trading today on optimism that the fine would cap the crackdown.

Context: Ant had plans to go public in 2020 in what would have been the biggest IPO to date. It was set to raise $37 billion in capital across Shanghai and Hong Kong — until regulators quashed the listing attempt.

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