(Hangzhou Comprehensive News) The Ant Group, which has completed the rectification under the guidance of the central bank of China, announced that it will start the shares repurchase procedure.However, because the company's valuation ratio has decreased significantly, the value of repurchase will be lower than investor expectations.

Comprehensive Securities Times and China Securities Network News, Ant Group announced on Saturday (July 8) that 7.6%of the equity will be repurchased.Yuan).This valuation decreased by 40%compared with the valuation of Series C in 2018, and a 70%decrease of a market value of US $ 280 billion (S $ 378 billion) before listing in 2020.

Ant Group said that this change meets market expectations in the current low valuation of Chinese Internet companies.This repurchase follows the principle of marketization.The Group also said that repurchase shares will be used to supplement employee incentive pools, which will help better attract outstanding talents and enhance the company's ability to use technology to serve the real economy.

Ant Group also said that based on the promise and confidence of the company's long -term development, on behalf of Alibaba and Ant Group's executives and employees, the shareholders of Hangzhou Junhan and Hangzhou Junao have voluntarily gave up participating in the repurchase.

Bloomberg pointed out that the repurchase can help the Ant Group to relieve the pressure from investors and focus on the development business.Global investors of Ant Group include U.S. Private Equity Fund Silver Lake, Huaping Investment and Carey Group, and Singapore Government Investment Corporation GIC and Temasek.According to the Wall Street Journal, if the Ant Group was successfully listed in 2020, investors have the opportunity to withdraw at a high valuation of $ 300 billion, but now they can only bear huge book losses.

Zhang Zihua, chief investor of Beijing Yunyi Assets, told Reuters that cash liquidity may be more important than valuation for some investors who want to withdraw.

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Ant's repurchase plan was officially announced by the Chinese official announcement after the rectification of the group.The People's Bank of China on Friday (July 7) announced that it would fires a fine of RMB 7.12 billion in Ant, which is regarded as the start of the company's financial holding company license, focusing on business growth, and eventually restarting the listing plan.Wang Qi, CEO of Shicheng Investment, who focuses on the Chinese market, told Reuters that China needs to solve the problem of the listing of Ant Financial to restore investor confidence."Any progress in this area is not only for Alibaba, but also for the Internet and fintech industries."

However, Bloomberg pointed out in a report on Friday that after a series of rectifications, even if it is listed, the valuation of Ant Group will not be close to 2020, because this company has become more like a financial company, not technology, not technology, not technology, not technology, not technologycompany.