Five mutual funds set up to offer exclusive access to Ant Group’s now-suspended $37bn listing are taking steps to offer angry retail investors a way to get their money back, but it may not be enough to quell the brewing outrage.
China’s biggest fintech group, controlled by billionaire Jack Ma, was accused of a conflict of interest when it offered retail investors access to its initial public offering — set to be the world’s largest — via an arrangement with the mutual funds distributed solely through its own Alipay mobile phone app.
Retail investors in the funds were subject to an 18-month lock-up period. Since Beijing’s abrupt suspension of the deal last week, they have become increasingly agitated after the funds declined to immediately return their cash, with many taking to social media to voice their displeasure and demand a refund.