Jack Ma takes a US$2.6b hit

Jack Ma was poised to become Asia's richest person with Ant Group's initial public offering, but his net worth tumbled US$2.6 billion (HK$20.28 billion) instead after the suspension of Ant Group's mega listing.

Meanwhile, both retail and institutional investors who were betting on a big first-day pop have been left empty handed.

According to Forbes' real-time billionaires list, Ma has a US$63.4 billion fortune, mainly from 4.8 percent of Alibaba (9988) shares.

Alibaba shares in Hong Kong fell 7.54 percent to HK$277.2 yesterday. Alibaba fell as much as 9.3 percent in the morning trading session, hitting a new low since the end of September.

The share in the New York Stock Exchange was traded 1.76 percent higher in the pre-market trading session, as of 08:51 pm.

The US-traded shares slid 8.13 percent in New York on Tuesday - the most since January 2015 - after Ant said its listings in both Shanghai and Hong Kong have been suspended.

Ant faced censure from Chinese state media 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.

"Good innovation is not afraid of regulation, but is afraid of outdated regulation," Ma said. "We shouldn't use the way we manage a train station to regulate an airport, neither should we regulate the future with a method from yesterday."

The fortunes of China's second wealthiest person, Tencent founder Ma Huateng, also fell US$1.2 billion, or 2.02 percent, to US$57.6 billion as Tencent (0700) shares retreated.

The third wealthiest, Zhong Shanshan, founder of Nongfu Spring (9633), has a US$57.3 billion fortune, which means Ma Huateng's might lost his second spot.

Some new economy shares also retreated while Tencent fell 1.59 percent to HK$588.5.

However, Xiaomi (1810) and Meituan Dianping (3690) rose. Xiaomi rose 7.88 percent to HK$23.95, while Meituan rose 6.01 percent to HK$17.8 yesterday.

Tencent's president Martin Lau said in the next ten years, all financial institutions will become financial technology companies and new competitors will join the market. He believed that on the one hand, the regulatory organization must encourage innovation, but on the other hand, they must also do well in risk management.

China's rapid development of financial technology is mainly due to the fact that China's credit card penetration rate is much lower than that of Western countries, which has allowed mobile payment to rise rapidly ever since its emergence, Lau said. He also pointed out that the regulatory authorities are open to financial innovation and also support the development of China's financial technology.