According to sources, the China Securities Regulatory Commission (CSRC) has failed to approve JD Technology’s Hong Kong initial public offering (IPO), forcing the listing to be postponed.
JD.com’s financial technology, cloud, and artificial intelligence division hoped to file its first documents with the Hong Kong Stock Exchange by the end of March, with a $2 billion IPO to follow later this year.
According to the CSRC’s website, it has appointed banks for the listing and submitted for an offshore listing in late January.
However, it has yet to obtain CSRC certification, which is required for a domestically established business to list offshore, including in China’s controlled territory of Hong Kong.
The biggest regulatory issue regarding JD Tech’s planned IPO is related to the company’s consumer financing operation, according to one of the four sources, who, like the others, declined to be identified due to confidentiality restrictions.
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