(Bloomberg) -- Ant Group Co.'s aspiration to revive its initial public offering could be jeopardized by recent investigations into Hangzhou's top political leaders, according to Bloomberg Intelligence.
An IPO relaunch may falter “as Beijing's probe into Hangzhou's power structure stirs up legal woes, aggravated by a warning about ‘996' work culture” -- a reference to Chinese companies' tendency to drive staff to work overtime -- BI analysts led by Francis Chan wrote in a note on Tuesday.
Read more about the probe into Hangzhou's top official
The regulatory curbs, dimmed profits and Hong Kong's IPO slowdown could dampen the outlook for Ant, which is among the biggest companies based in Hangzhou, Chan said.
China is investigating Hangzhou's top government official for serious violations of party discipline and state law, authorities said earlier this month, without elaborating.
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