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Rouhani says for Iran it is not important who wins U.S. election

DUBAI, Nov 4 (Reuters) - Iran's President Hassan Rouhani said on Wednesday that the result of the U.S. election was not important for the country's clerical rulers, but called on the next president of the United States to respect international treaties and laws.

"For Tehran, the next U.S. administration's policies are important and not who wins the U.S. election," Rouhani said in a televised cabinet meeting. (Writing by Parisa Hafezi, editing by Louise Heavens)

Latest Stories

  • Dow Jones Futures Jump And Tech Futures Soar, As Trump Seen Winning 3 Key Battleground States

    Dow Jones futures in focus late Tuesday, as President Donald Trump and former Vice President Joe Biden face off on Election Day. Tesla regained a key level.

  • Jack Ma's Blunt Words Just Cost Him $35 Billion

    (Bloomberg Opinion) -- Jack Ma is a very busy man. China’s richest man has been busy launching the world’s biggest IPO. He has been busy preparing for Alibaba Group Holding Ltd.’s grandest four-day Double Eleven shopping extravaganza. And yet two weeks ago, Ma somehow found the time to opine on China’s banking system at a high-profile financial forum in Shanghai, once again throwing himself into the eye of the storm. In that speech, apart from labeling the global banking Basel Accords as an “old people’s club,” Ma said “systemic risk” is not the issue in China. Rather, China’s biggest risk is that it “lacks a financial ecosystem.” Chinese banks are like “pawn shops”, where collateral and guarantees are the hard currencies. As a result, some decided to go so big they are not allowed to fail. “As the Chinese like to say, if you borrow 100,000 yuan from the bank, you are a bit scared; if you borrow a million yuan, both you and the bank are a little nervous; but if you take a 1 billion yuan loan, you are not scared at all, the bank is,” Ma said. The consequences came this week. On Monday, Beijing’s top financial watchdogs summoned Ma and dressed him down. Beijing also issued draft rules on online micro lending, stipulating stricter capital requirements and operational rules for some of Ant Group Co.’s consumer credit businesses. But the big shocker came on Tuesday night. The Shanghai Stock Exchange suspended Ant’s listing on its Star board, citing Monday's meeting and subsequent regulatory changes. Ant then said in a filing it would suspend its Hong Kong IPO as well. The fintech giant was scheduled to start trading on Thursday. The news sparked a slide in Alibaba shares on Tuesday in New York, while dragging down other Chinese companies’ U.S.-listed stocks.What Ma said was a bit sensational, perhaps. But he was right. China’s bankers are so averse to extending credit to smaller borrowers that Beijing redefined “inclusive financing” to make its banks’ loan books look prettier. In fact, it’s been so difficult for small businesses to obtain bank credit in the last decade that they have become hard wired not to invest for the future. Here’s the latest tidbit of evidence: In the third quarter, even as China’s economy recovered and 86% of 300 smaller manufacturers CLSA spoke to became profitable, most remained wary. A record-breaking 59% of their capital expenses went into mere “regular maintenance,” the brokerage found.Ma’s words were blunt, but these phrases, such as “pawn shops,” are not his concoctions. Bureaucrats at the People’s Bank of China, for instance, had used the same words themselves. So why is Ma being singled out? Could it be that Ant is too profitable and is now being targeted? Ant is raising at least $34.5 billion in an IPO that attracted more than $3 trillion of retail orders. Meanwhile, regional banks are still in the doghouse, struggling and sometimes being restructured because they lack capital buffers. In the fast-growing consumer credit business, Ant is essentially a matchmaker while banks lend and put aside cash in case some loans go sour. Fintech giants are making much more than lenders, city commercial banks complained to local media. Ant’s vast consumer base appreciates its small loan offerings. But going forward, to appease its banks, Beijing may want to level the regulatory playing field. For instance, Ant may no longer operate just as a matchmaker and might be asked to keep 30% of the loans on its balance sheet, compared with only about 2% now. That should have been no problem because Ant’s IPO would have brought in billions of dollars of capital for loan provisions.In its statement, the Shanghai exchange cited the changing regulatory landscape as one reason Ant no longer qualified for a listing. But in reality, nothing has changed. Since 2017, Beijing’s watchdogs have been debating whether to allow online micro lenders to take a simple loan facilitation model or require them to put away loan provisions. This new draft rule is just a continuation of the debate. At the opening of his speech, Ma admitted he was conflicted as to whether to attend the forum and speak up. Now he probably regrets it. But here’s the thing: If China is serious about financial innovation, “inclusive financing” or the digital yuan, let the man who pioneered the business and made billions along the way share his experiences and thoughts. If Ma says systemic risk is not China’s Achilles’ heel, hear him out. He knows where the real problem is and could be part of the solution.(Updates with Alibaba shares in the fourth paragraph. An earlier version was corrected to show China is averse to extending credit to smaller borrowers, not lenders, in the fifth paragraph.)This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Dave Ramsey warns: Don't do these 10 things with your money

    The financial expert and radio host says Americans stay poor because of these blunders.

  • Dow futures slump as election results tighten

    U.S. stock-market futures were mostly lower overnight, as votes of hundreds of millions of Americans were being tallied and the crucial race between President Donald Trump and former Vice President Joe Biden showed no signs of a clear victor.

  • I have a seven-figure nest egg — am I saving too much for retirement?

    I recently had a conversation with a colleague about retirement and was told I’m saving too much! My wife and I are both 57 and have been aggressive savers ever since my brother, an institutional retirement financial expert, told us to max out our savings when we were 25 years old.

  • Marijuana Stocks In Focus As Cannabis Legalization Wins In Several States

    Marijuana stocks will be in focus after voters in several states backed cannabis legalization, but with less clarity about federal elections.

  • U.S. Stock Limit Rules Halted Nasdaq Trading as Futures Soared

    (Bloomberg) -- Nasdaq 100 stock futures rose fast enough to trigger an exchange volatility halt that pauses especially rapid swings at 3.5%, as traders assessed election results.Contracts on the Nasdaq 100 rose jumped 3.5% within an hour, setting off a trading pause for two minutes. If gains extend to 7% from a Chicago Mercantile Exchange reference price calculated at the end of the trading day Tuesday, moves will be entirely capped with hard upside limits. Nasdaq futures are up 3.9% in the complete overnight session.Stock futures triggered trading limits multiple times earlier this year in the midst of the Covid-19 crash. Then, though, the limits limits kicked in at 5%, and there was no threshold at the 3.5% mark. CME Group changed the limit restrictions last month.“The rules were recently changed to better allow for price discovery, based on the findings of an industry-wide task force,” CME spokesperson Chris Grams said in an email.According to a CME Group fact sheet, these “dynamic circuit breakers” are in place to “help reset the market if it moves too far, too fast.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • China Plans Deeper Ant Crackdown With Bank Funding Curbs

    (Bloomberg) -- The shock suspension of Ant Group Co.’s $35 billion initial public offering is just the beginning of a renewed campaign by China to rein in the fintech empire controlled by Jack Ma.Authorities are now setting their sights on Ant’s biggest source of revenue: its credit platforms that funnel loans from banks and other financial institutions to millions of consumers across China, according to people familiar with the matter.The China Banking and Insurance Regulatory Commission plans to discourage lenders from using Ant’s platforms and has already asked some to ensure their portfolios are compliant with stringent draft regulations announced on Monday, said the people, who asked not to be identified discussing private information.The proposed measures, which call for platform operators to provide at least 30% of the funding for loans, would render many of Ant’s existing transactions non-compliant. The company currently keeps about 2% of loans on its own balance sheet, with the rest funded by third parties or packaged as securities and sold on.The full scope of China’s plans for Ant are unclear, and it’s possible that lenders will continue to work with the company once it complies with regulators’ requests. Any suggestion that banks would stop using its platforms is “unsubstantiated,” Ant said in a response to questions from Bloomberg. “Ant will continue to support bank partners to make independent credit decisions and leverage Ant’s technology platforms to serve consumers and small businesses.”The CBIRC didn’t immediately respond to a request for comment. Shares of Alibaba Group Holding Ltd., which owns a third of Ant, fell 6.3% in Hong Kong as of 2:31 p.m.“From the perspective of regulators and investors, they all need Ant to provide a better disclosure on the co-lending business,” said Chen Shujin, Hong Kong-based head of China financial research at Jefferies Financial Group Inc. “Ant needs to be aligned with regulations going forward and show that its business model can help lower borrowing costs for the economy rather than raising them with some kind of monopoly.”China abruptly halted Ant’s IPO after summoning Ma to a meeting earlier in the week to outline an array of concerns and new regulations. President Xi Jinping’s government is tightening controls on Ant and other fast-growing financial conglomerates after years of allowing them to operate without capital and leverage requirements imposed on banks.Authorities haven’t yet provided much detail about what prompted the turnabout on the IPO, beyond saying it couldn’t go ahead because of a “significant change” in the regulatory environment.The halt comes after Ma blasted the nation’s financial system and questioned global regulatory models at a high-profile conference last month, calling banks “pawn shops.” China is still a “youth” and needs more innovation to build an ecosystem for the healthy development of the local industry, Ma said.Any funding curbs could deal a major blow to Ant. After getting its start in online payments, lending is now the firm’s biggest business. It has underwritten about 1.7 trillion yuan ($253 billion) in consumer loans and 422 billion yuan in small business loans for about 100 banks and other financial institutions Revenue from its CreditTech unit jumped 59% to 29 billion yuan in the first six months of the year, accounting for 40% of the total.Ant helped provide small unsecured loans to about 500 million people over the past year through two platforms: Huabei (Just Spend) and Jiebei (Just Lend). The former focuses on quick consumer loans for small purchases, while the latter finances everything from travel to education. Ant typically charges annualized interest rates of about 15% to consumers. Its more than 20 million small business borrowers pay an average lending rate of about 11%, almost double the average 5.94% small borrowers can get from banks.Guo Wuping, head of consumer protection at the CBIRC, said in a commentary on Monday that Ant’s Huabei service was similar to a credit card but with higher charges. Financial technology firms use their market power to set exorbitant fees in partnerships with banks, which provide most of the funds required, he said.Ant would have to set aside 95 billion yuan in capital to comply with the draft rules issued by the CBIRC on Monday, or 2.7 times the current capital for its two micro-lending arms, according to estimates from Jefferies.(Updates with analyst comment in the seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Stock-market hope for a ‘blue wave’ Election Day outcome washes out

    Markets have been wagering that the 2020 Election would result in a so-called “blue wave,“ but that scenario seems far from likely, as the race has shaped up to be a nail-biter of a contest between former Vice President Joe Biden and incumbent Donald Trump.

  • I’m a 57-year-old nurse with no retirement savings and I want to retire within seven years. What can I do?

    You are not alone in having nothing saved for retirement. You may have to readjust your expectations, for what retirement looks like, how much you’ll have saved for it and potentially when it starts, financial advisers.

  • 3 ‘Strong Buy’ Stocks With at Least 5% Dividend Yield

    Americans went to the polls today under the shadow of a resurging pandemic, with a substantial increase in cases nationwide and the number of people hospitalized with COVID-19 reaching record highs in a growing number of states. Meanwhile, it's still unclear what a second stimulus package from the federal government may look like and how long it will be until that arrives.To add fuel to this, there are several European governments that are starting to lock down their respective countries all over again in order to prevent the further spread of COVID.With all of this uncertainty, what is an investor to do? Adding dividend stocks as a potential defensive play can add protection to your portfolio.We’ve opened up the TipRanks database, finding three stocks whose profile justifies the entry risk in today’s conditions. All three offer at least 5% dividend yield, and backed by several analysts, enough to earn a “strong buy” consensus rating. Let's take a closer loo. AbbVie (ABBV)AbbVie is a pharmaceutical company, one of Big Pharma’s major names. Pharmaceutical and biotech companies are known for their combination of high risk and high reward potential. The rewards and risks are both typified in Humira, the company’s successful immunosuppressive anti-inflammatory drug. Humira is expected to bring in ~40% of AbbVie’s 2020 drug division revenues – but with an expired patent, competition is growing. Against this backdrop, AbbVie had acquired another pharmaceutical company, Allergan, that increased top-line revenues by $16B for AbbVie while the combined companies bring in $2B in synergies. The acquisition showed investors that AbbVie is simultaneously looking beyond their holdings in Humira.Future guidance has revenues moving higher along with earnings. Guidance on revenues has been increased to $10.47 - $10.49 EPS versus $10.35 - $10.45 EPS. The earnings were enough to allow management to raise the dividend from $1.18 to $1.30. At $5.20 annualized, this dividend yields 6.11%, more than 2.5x the average dividend found among S&P listed companies. The payout ratio of 49.7% indicates that the dividend is safe – current earnings easily cover it, and there is plenty of room for further growth.Covering the stock for SVB Leerink, analyst Geoff Porges noted, "AbbVie had another strong beat and raise in Q3, demonstrating their very resilient business during the pandemic and highlighting strong growth prospects for their core business. Guidance was once again raised, and the company’s comments about mid- to long-term revenue potential for their core products were very positive [...] AbbVie’s valuation seems very attractive at today’s price, and we see substantial upside potential as we expect the stock to revert to its more normalized absolute and relative multiple after the current election blues are resolved in the new year."To this end, Porges rates AbbVie an Outperform (i.e. Buy) along with a $119 price target. This figure suggests a potential upside of 35% over the next year. (To watch Porges track record, click here)Overall, Wall Street is very bullish on Abbvie. There are a total of 8 ratings; 7 Buys and 1 Hold -- all add up to a Strong Buy consensus rating. The stock’s current price is $88 and the average price target is $110.13 suggesting 25% one-year upside move. (See ABBV stock analysis on TipRanks)WesBanco (WSBC)Next up is WesBanco, a bank operating in the region of western Pennsylvania, West Virginia, Ohio and Kentucky with 236 branches. The pandemic has struck financial institutions because of loans in default. Loan losses, or their potential, have forced banks and lenders to start building up reserve ratios and set aside revenue for loan losses.WesBanco has spent the past two quarters building up their reserve ratio with a large amount being set aside in Q2 and a smaller amount in Q3 and currently has an above-peer ratio level.Turning to the dividend, WSBC currently pays out 32 cents per common share, and even in the coronavirus crisis it held that payment steady. The 52-cent payment annualizes to $1.32 per share, and gives a considerable yield of 5.16%.Raymond James analyst William Wallace is standing squarely with the bulls, noting: "PTPP earnings came in above expectations as noted, driven largely by lower operating expenses and higher fee income. Ultimately, we expect investors to remain honed in on credit in the nearer-term, where the company's bolstered reserve continues to provide us with a certain degree of comfort. All in, with shares trading essentially in line with peers, we continue to view the risk/reward dynamic positively given the company's solid capital levels (+9% TCE), along with both promising core earnings and deferral trends."Unsurprisingly, Wallace rates WesBanco an Outperform (i.e. Buy) along with a $29 price target. This target suggests a potential upside of 15% over the next year. (To watch Wallace’s track record, click here)Wallace is not the only fan of WSBC on Wall Street, as TipRanks analytics exhibit the stock as a Strong Buy. Based on 4 analysts tracked in the last 3 months, 3 rate the stock a Buy, while one says Hold. The 12-month average price target stands at $26.88, marking a 6.5% upside from where the stock is currently trading. (See WSBC stock analysis on TipRanks)CatchMark Timber (CTT)CatchMark Timber is an owner and operator of timberlands located in various parts of the country. The pandemic has not directly affected the timber industry. However, timber itself has maintained higher prices as home builders in the United States have seen increased demand. A lot of this new demand is generated from individuals moving out of cities into suburban areas.In the most recent quarter, Q3 2020 EBITDA for CatchMark Timber was above expectations coming in at $12.4MM versus $11MM consensus. The above-expectation earnings were attributed to cost controls from logging and hauling as well as SG&A costs. At the same time that CatchMark reported Q1 earnings, it also declared the Q3 dividend. The payment remains steady at 13.5 cents per share, yielding a solid 6%. The company has a 6-year history of keeping up its dividend payments, in all economic conditions.Adding to the good news, RBC Capital analyst Paul Quinn, rated 5-stars with TipRanks, has upgraded CTT to Outperform (i.e. Buy), while keeping his price target at $10. (To watch analyst track record, click here)As Quinn states, “CatchMark reported Q3 results that were in line with our forecasts but above consensus expectations. Although there have been minimal changes in business prospects over the last few months, CatchMark shares have moved in a wide range around our target price of $10. With the share price having pulled back to an attractive level and future prospects remaining solid, we are increasing our rating."Overall, CTT’s Strong Buy analyst consensus is derived from 3 "buy" and 1 "hold" ratings. Shares are priced at $8.91, and the average price target of $10.88 indicates potential for 22% growth. (See CTT stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

  • Nio Stock Is a Winner, But How Much Higher Can It Go?

    Heading into today's election, the markets might have been floundering, but the extreme bouts of volatility had minimal impact on Nio (NIO).The Chinese EV maker continued on its merry way, by doing what it has done so well throughout 2020 – accumulating share gains. Year-to-date, the stock has accrued an astounding 764%.The market might be infatuated with tech/growth/EV stocks, all boxes the company dubbed "the Chinese Tesla" ticks, but its market performance is getting some backup from real world data.Nio announced earlier this week that in October it sold 5,055 vehicles, displaying a 100% year-over-year uptick.With waiting times on deliveries now reaching up to 6 weeks, Deutsche Bank analyst Edison Yu believes the demand “continues to outstrip supply.”“NIO already announced it hit 5k units produced for the month last week on 10/29 and we think it could potentially reach about 6k output/month in the near term running on 1 shift assuming it can run at full speed/efficiency and supply chain can keep up,” the analyst said. “As a reminder, the plant can achieve max capacity of 150k per year on 2 shifts, which NIO is targeting on a run-rate basis by the end of next year given the strength of the order book (we expect supply constraints through most of 2021).”For October, Yu estimated Nio would deliver 4,750 units, and the latest beat represents “another month of record sales.” Yu believes Nio’s order book “remains robust” and expects another tailwind from the 100kWh battery option, which should become available later this month.Nio is also targeting European expansion and hopes to enter the market by 2H21. Yu anticipates NIO will to “try to emulate the success of Huawei and Xiaomi.” The two hold approximately a quarter of European market share.Yu’s confidence in Nio is confirmed by a bump to the price target; The figure moves from $26 to $34. However, it is proving a thankless task keeping up with Nio’s share price gains and the new target suggests only modest downside of 3%. Yu’s rating, at this point, remains a Buy. (To watch Yu’s track record, click here)Overall, the Street’s outlook on Nio’s prospects offers a conundrum. While the stock holds a Moderate Buy consensus ratings, at $23.37, the average price target implies shares will drop by 30% over the coming months. (See NIO stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

  • "It's a joke': retail investors shocked as China halts Ant Group's IPO

    Mom-and-pop investors who put in bids worth a record $3 trillion in China's Ant group - equivalent to Britain's annual economic output - were stunned after regulators abruptly suspended what would have been the world's largest stock market debut. China blocked the fintech giant's $37 billion listing on Tuesday, thwarting its debut in Hong Kong and Shanghai scheduled for Thursday and dealing a severe blow to the company founded by billionaire and Alibaba co-founder Jack Ma. The suspension followed a Monday meeting between China's financial regulators and Ant executives, including Ma, who were told the company's lucrative online lending business would face tighter scrutiny, sources told Reuters.

  • The U.S. could split up, Gundlach says. Here’s how he’d invest for that.

    Big change, borne of unrest and acrimony, is coming to the U.S. in the next 5-10 years, the outspoken billionaire investor thinks. Here's what that means for asset allocation.

  • Cramer Gives His Opinion On Jumia Technologies, Nio, More

    On CNBC's "Mad Money Lightning Round," Jim Cramer said Jumia Technologies AG - ADR (NYSE: JMIA) is a good spec. He likes the idea.FibroGen Inc (NASDAQ: FGEN) is a total spec and earnings won't matter, said Cramer. He likes the idea as long as investors put the stock in the total speculative column.Nio Inc - ADR (NYSE: NIO) did take off and Cramer admits he was late to the party. He thinks it goes higher.Cramer is not a buyer of Sabre Corp (NASDAQ: SABR). He wants to stay away from the travel stocks.Crowdstrike Holdings Inc (NASDAQ: CRWD) is one of the absolute best, said Cramer. He loves the stock and he would hold it for multiple years.See more from Benzinga * Click here for options trades from Benzinga * 'Fast Money Halftime Report' Picks For October 22(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • I’m 60, my wife thinks ‘money is for spending,’ I just lost my job and plan to retire — how can we avoid money fights?

    Have a question about retirement, including where to retire? Email us

  • China Halts Ant Group’s IPO, Throwing Ma Empire Into Turmoil

    (Bloomberg) -- It was heralded as China’s answer to JPMorgan -- a homegrown financial giant on the cusp of the biggest stock-market debut the world has ever seen.Instead, with billions on the line and an initial public offering all but sealed, Chinese authorities have abruptly thrown into doubt the future of Ant Group Co. and its celebrated founder, the billionaire Jack Ma.Only days before the financial-technology juggernaut was to go public in Shanghai and Hong Kong -- a coup for China’s financial markets that once would have been unimaginable -- the $35 billion IPO was halted on Tuesday after Ma was summoned by regulators. In an extraordinary turn of events, authorities announced that they had belatedly discovered an array of shortcomings that, by some accounts, might require the sprawling Ant to be overhauled.“The way I’d read it, it’s a deliberate public relations move,” said Sean Darby, chief global equity strategist at Jefferies. “This has happened before when companies appear to have become too big versus the state for the authorities’ liking.”Reaction in the financial market was swift. Ma’s Alibaba Group Holding Ltd., which owns a third of Ant, plunged 7.1% in Hong Kong, after falling by the most in almost six years in New York. The sell-off reduced Ma’s fortune by almost $3 billion. Hong Kong Exchanges & Clearing Ltd., owner of the city’s bourse, dropped 2.2%.The move upends what had been one of China’s biggest business success stories, as well as what was to be a pivotal step in the development of the nation’s fast-growing capital markets.“It’s definitely surprising,” said Mike Bailey, director of research at FBB Capital Partners. “If there is something strange going on on the macro side for China’s financial markets or in the company, that would be worrisome.”In just a decade, Ant, an affiliate of Ma’s Alibaba Group, has exploded into the world’s largest financial technology company, reshaping the lives of many ordinary Chinese. But its ascendance -- and Ma’s growing global reputation -- has also posed a threat to China’s state-run lenders and their political benefactors.Tuesday’s developments left bankers and global investors groping for answers. The immediate fate of the many billions already tied up in the IPO is for now uncertain.Changes NeededChinese authorities didn’t give much detail about the issues behind the suspension, beyond saying that the much-anticipated debut couldn’t go ahead because there had been “significant change” in the regulatory environment.The company will have to make changes that include capital increases at its lucrative micro-lending units, according to people familiar with the matter. It will also have to reapply for licenses for the units to operate nationwide, the people added, asking not to be identified discussing a private matter.The IPO is expected to be delayed by about six months, and funds will be returned to investors in the meantime, news portal QQ.com reported, citing an unidentified person.Major gray market brokers for the deal, including BTIG LLC, told clients all transactions will be canceled, according to people familiar with the matter. Millions of shares were traded in the over-the-counter market prior to Ant’s planned debut, many at about a 50% premium to the listing price of HK$80 ($10.32). BTIG didn’t immediately respond to a request for comment.Ant, which spun out of Alibaba in 2010, has long been seen as a champion of China’s economy and an example of how the Communist Party has allowed entrepreneurs -- especially in the technology sector -- to flourish within its top-down political system. Tuesday’s setback may cast a pall over the country’s financial markets, even as President Xi Jinping tries to create stock exchanges that can rival the U.S.“Ant Group sincerely apologizes to you for any inconvenience caused by this development,” the company said in a message to investors. “We will properly handle the follow-up matters in accordance with applicable regulations of the two stock exchanges.”There were warning signs on Monday when Ma was summoned to a rare joint meeting with the People’s Bank of China and three other top financial regulators and told his firm would face increased scrutiny and be subject to the same restrictions on capital and leverage similar to banks.“This further reinforces the regulatory pressures building on tech giants,” said Nader Naeimi, head of dynamic markets at AMP Capital Investors Ltd. in Sydney. “It’s good news for banks, bad news for Jack Ma,” he said, referring to the competitive threat Ant poses for traditional lenders.Record IPOThe IPO was on pace to break records. It had attracted at least $3 trillion of orders from individual investors for its dual listing in Hong Kong and Shanghai, and in the preliminary price consultation of its Shanghai IPO, institutional investors subscribed for over 76 billion shares, more than 284 times the initial offering tranche.The fintech company’s IPO would have given it a market value of about $315 billion based on filings, bigger than JPMorgan Chase & Co. and four times larger than Goldman Sachs Group Inc.Dealmakers at firms including Citigroup Inc. and Morgan Stanley were set to feast on an estimated fee pool of nearly $400 million for handling the Hong Kong portion of the sale, but were instead left reeling after the listing was pulled. Top executives close to the transaction said they were shocked and trying to figure out what lies ahead.But Ant has faced scrutiny in Chinese state media in recent days after Ma criticized local and global regulators for stifling innovation and not paying sufficient heed to development and opportunities for the young. At a Shanghai conference late last month, he compared the Basel Accords, which set out capital requirements for banks, to a club for the elderly.And over the weekend, at a meeting of the Financial Stability and Development Committee led by Vice Premier Liu He, officials stressed the need for fintech firms to be regulated.Ant dominates China’s payments market via the Alipay app. It also runs the giant Yu’ebao money-market fund and the country’s largest online consumer-lending platform. Other businesses include a credit-scoring unit and an insurance marketplace.(Updates with gray market trading in 13th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Is Nio Stock A Buy Right Now As Chinese EVs Boom? Here's What Earnings, Stock Chart Show

    Supercharged Nio stock taps demand for electric cars. Here is what the fundamentals and technical analysis say about buying Nio shares now.

  • Trump or Biden? 5 Stocks to Buy No Matter Who Wins the Election.

    “It’s hard to argue that the country doesn’t have infrastructure problems,” says Scott Davis, CEO of Melius Research. Well, there’s a giant need for greater and more accurate coronavirus testing and tracing capabilities—and that will help the companies that supply them. (ABT)’ (ticker: ABT) six coronavirus tests drove a 39% gain in third-quarter diagnostic sales.

  • Dow Jones Jumps 600 Points In Election Day Rally As Biden Leads Trump

    Key market indexes extended their gains midday Tuesday, with the Dow Jones Industrial Average roaring 600 points higher on Election Day.