China suspends world-record listing of Ant Group, sending Alibaba shares down

China suspended Ant Group’s $37 billion listing on Tuesday, thwarting the world’s largest stock market debut with just days to go in a dramatic blow to the financial technology firm founded by billionaire Jack Ma.

Alibaba, which owns a roughly 33% stake in Ant Group, saw its Hong Kong-listed shares tumble by more than 7% in Asia trade on Wednesday. Alibaba shares on the New York Stock Exchange closed more than 8% lower overnight.

This followed a meeting with China’s financial regulators on Monday during which Ma and his top executives were told that Ant’s lucrative online lending business would face tighter scrutiny, sources told Reuters.

In China, analysts interpreted the move as a slap down for Ma, who had wanted Ant to be treated as technology company rather than a highly regulated financial institution