The funds distributor for Ant Group’s stock listing says five newly launched Chinese funds purposed for Ant Group’s upcoming stock listing has raised 60 billion yuan or about $8.93 billion cumulatively which came as outcome of selling it within days. Over 10 million retail investors injected the investments in this fund raising .
Despite uncertainties because of potential U.S. sanctions against the Chinese fintech giant, the clout of retail investors was seen as in during the subscription period, about average of eight investors placed their orders in each second.
This extraordinary interest of the investors in sole third-party distributor of the five mutual funds also underlines the win of Ant’s online payment platform Alipay despite the fact that it has ability to impact the traditional fund sales models.
Alibaba Group’s fintech arm Ant is projected to raise $35 billion in a dual listing. It is expected to hold in Hong Kong and Shanghai’s STAR Market in October which would said to be a world’s largest IPO.
The massive interest also by US retail investros has ignored the concerns possible suffering of Ant’s IPO from any U.S. restrictions as few reports say that United States President Donald Trump is considering putting the restrictions on Ant and Tencent reffering to the concerns of threatening national security.
These funding developments can boost Ant’s fast growing wealth management business. Ant’s Wealth management business revenue increased 56% in first six months of 2020 while fintech platform has also raised over 4 trillion yuan in investments.
On Friday’s Business opening, Alipay announced the sold out of other three funds ran by China Asset Management Co (ChinaAMC), China Universal Asset Management and Zhong Ou Asset Management Co.