Selena Li

HONG KONG (Reuters). Reuters has learned that Ant Group received preliminary approval in Beijing for its first public offering (IPO), in Shanghai and Hong Kong. It is this, according to two sources. The biggest indication yet of a chilling Beijing’s current tough stance regarding the technology sector.

Ant is an affiliate of the Chinese e-commerce giant. Alibaba Sources say that Group Holding Ltd. (NYSE:) Group Holding Ltd. plans to file the preliminary prospectus in the offering within the next month.

China’s attitude to the recent crackdown campaigns that it launched against many industries, from technology to property, has been changed by China as it seeks help for an economy suffering under COVID-19 lockdowns.

Investors and companies have high expectations for the shift in messaging, but there is still uncertainty.

Below is a list of events that underline the ease in China’s regulation crackdown since the start of the year.

February 10, 2018: China’s Cyberspace Watchdog stated that it held a January symposium with Chinese technology giants. They said the event had helped them gain a better understanding of the sector and how they can continue to develop in a changing regulatory environment. March 16: China’s vice premier Liu He, China’s economic advisor, demanded market-friendly policies be implemented to help the economy. He cautioned against any new measures that might harm markets. This helped boost ailing shares in China, Hong Kong, and China.

April 11, 2012: China’s gaming regulator issued publishing licenses for 45 games that were part of XD Inc and Baidu’s “Party Star” series. This was the end of a nine month freeze which had been a major blow to many tech companies in China.

April 29th: China’s powerful Politburo announced, at a meeting presided over by President Xi Jinping that it would increase its policy support for China’s second largest economy (including the so-called platform economy).

May 15, 2008: Chinese financial officials allowed an additional reduction in the interest rate on mortgage loans for homebuyers. This was in an effort to support China’s property market, and revive one of its most important economies.

May 16th: To boost market sentiment, authorities requested three highly-skilled Chinese property owners to issue bonds. Two people with direct knowledge told Reuters.

May 24, 2012: China’s financial regulators have promised to preserve credit growth stability in the property market and assist homebuyers affected by COVID-19, according to a statement.

May 17, 2017: China’s Vice-Premier Liu told a meeting of top political consultative bodies that China supported development and listing technology companies on the public bourses. The meeting was attended by tech executives including founders of Baidu search engine and Qihoo 360 mobile security software.

June 7th: China’s gaming regulator issued publishing licenses for 60 games.

June 8, 2008: Reuters, citing reliable sources, reported that Didi, a Chinese ride-hailing company, is currently in negotiations with Sinomach Automobile for a third-of its electric-vehicle units. This indicates that the ride-hailer’s regulator problems are behind it as it focuses more on growth.