China’s move to halt Ant Group Co.’s massive stock debut could reduce the fintech giant’s value by as much as US$140 billion ($188.73 billion), according to analysts’ revised estimates.

New regulations that could force Ant to raise more capital to back lending and seek national licenses to operate across the country may reduce the firm’s valuation by about half, according to estimates from Morningstar Inc. and other firms. The regulatory details are preliminary and could be subject to change.

If Ant’s US$280 billion pre-IPO valuation is halved, it would essentially mean the company is worth less than what it was two years ago when it raised money from some of the world’s largest funds including Warburg Pincus LLC, Silver Lake Management LLC and Temasek Holdings Pte.

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