Risk Profile: Ant Technology Group

In a new report released on Sep­tem­ber 7, RWR Advi­so­ry Group address­es the risk pro­file of Ant Tech­nol­o­gy Group, as it pre­pares for an ini­tial pub­lic offer­ing (IPO) in Hong Kong and Shang­hai that is expect­ed to be the largest in his­to­ry (man­aged by a team of finan­cial insti­tu­tions, four of which are Amer­i­can).

Ant Tech­nol­o­gy Group is a par­tial­ly owned (33%) sub­sidiary of Chi­nese e‑commerce giant Aliba­ba and pro­vides finan­cial tech­nol­o­gy (fin­tech) prod­ucts and ser­vices to its con­sumers in Chi­na and around the world.

As high­light­ed in this report, Ant Tech­nol­o­gy Group rais­es a num­ber of risk con­cerns for prospec­tive investors that go beyond reg­u­lar busi­ness con­sid­er­a­tions, notably those asso­ci­at­ed with nation­al secu­ri­ty and human rights. These include a range of issues asso­ci­at­ed with oper­at­ing a tech­nol­o­gy com­pa­ny that impli­cates troves of per­son­al user data under the juris­dic­tion and over­sight of the Chi­nese gov­ern­ment and its rul­ing Chi­nese Com­mu­nist Part (CCP).