- Ant Group announced the suspension of its blockbuster IPO in both Shanghai and Hong Kong, resulting in an 8.1 percent plunge on Tuesday.
- The suspension of the IPO was not due to some shenanigans discovered but the release of draft rules stipulating tightened online microlending standards.
- The new rules impact the entire industry, not just Ant Group. As an sector leader, Ant has an advantage to emerge from this debacle stronger than peers.
- Readers familiar with my coverage on Tencent would know it similarly suffered from regulatory tightening but has thrived in spite of the scrutiny.
- I argue that Alibaba's Tuesday plunge is a buying opportunity.
For further details see:
The Ant Got Crushed, Buying Opportunity For Alibaba