(Yicai Global) Aug. 23 -- As China’s top anti-graft watchdog announced it is investigating Hangzhou’s party secretary, Ant Group denied online rumors that a “certain person” had bought shares in the Hangzhou-based fintech giant during its USD35 billion initial public offering.

Ant said in a statement yesterday that the IPO process was open and transparent, and the rumors that a “certain person” purchased shares in the company and later received a refund were false. Ant also never cooperated with the legals firms and lawyers mentioned in the rumors, it added.

The rumors claim that the family of Zhou Jiangyong, the former secretary of the Hangzhou Municipal Party Committee now being probed for disciplinary violations, spent CNY500 million (USD77 million) to buy shares in Ant’s IPO last November. After regulators canceled the IPO, the family was refunded CNY520 million for the unsuccessful listing, according to the rumors.

Ant aimed to go public on Shanghai’s Nasdaq-style Star board and Hong Kong’s main board, kicking off the process in July last year.

China’s Central Commission for Discipline Inspection and the State Supervision Commission are investigating Zhou for serious violations of party discipline and state law, according to an Aug. 20 announcement. The CCDI also said today that Hangzhou has rectified inappropriate government-business relationships that led some firms to receive special treatment.

Zhou had served on the Hangzhou Municipal Party Committee since May 2018, and he had many connections with Ant affiliate Alibaba Group Holding. Zhou awarded Jack Ma, founder of Ant and Alibaba, the honorary title of Meritorious Hangzhou Citizen in September 2019. Hangzhou and Alibaba have developed a brand new government-enterprise relationship, Ma said at the time.

Editor: Futura Costaglione