(Yicai Global) Oct. 14 -- Ant Group said the approval process for its stock market listing, which could be the world’s biggest ever, is proceeding in an orderly manner after Reuters reported that Chinese regulators have delayed the fintech giant’s initial public offering as they look into a potential conflict of interest.

As the IPO has no timetable, any speculation about timing has no factual basis, the Paper reported yesterday, citing a spokesperson for the Hangzhou-based company.

An article Reuters ran yesterday based on unidentified people with direct knowledge of the matter said that the China Securities Regulatory Commission is investigating the role of Alipay, Ant’s ubiquitous mobile payment platform, as the sole third-party channel for retail investors to buy into five mutual funds that in turn will invest in the company’s IPO.

That exclusive arrangement has circumvented the normal way retail investors buy into such funds through investment banks and securities firms, Reuters said. 

Ant was seen advertising the five funds, accessible to retail investors via Alipay instead of banks or brokerages, from Sept. 25. The funds managers have promised to allocate some of the proceeds -- a regulatory maximum of 10 percent -- to the upcoming IPO. 

The mutual funds -- run by China Asset Management, China Universal Asset Management, E Fund Management, Penghua Fund Management and Zhong Ou Fund Management -- took CNY10.2 billion (USD1.5 billion) in their first hour, the Beijing News reported. More than 10 million investors poured over CNY60 billion into them in the 14 days after they were launched late last month.

Ant, which is affiliated with Chinese e-commerce stalwart Alibaba Group Holding, seeks to raise USD30 billion via dual listings in Shanghai and Hong Kong, it said on July 20. The company is aiming for at least USD35 billion, which would make the IPO the biggest in history, Bloomberg News reported on Sept. 22, citing people with knowledge of the matter.

The Shanghai Stock Exchange has already approved the offering, while the Hong Kong bourse has yet to give its go ahead.

The people Reuters spoke with said it was not likely that the CSRC’s investigation would wreck the IPO.

Editor: Emmi Laine