China’s suspension of the world’s biggest float came at the eleventh hour after authorities published a consultation paper on Monday that recommended tighter rules for online micro-lending companies – which if implemented will require changes to Ant’s business model and hit its growth prospects.Ant <688688.SS><9988.HK> did make disclosures about major regulatory risks in China in its prospectus and investors are expected to factor in a degree of regulatory uncertainty when making investments.

However, some fund managers who bought stock in the IPO say Ant did not do enough and they wonder how it could not have known that tighter regulations were in the offing.”There was no mention of microlending regulation tightening, that (was) not a conversation that was had,” one hedge fund ma…