(Yicai Global) July 12 -- Shares in Hundsun Technologies halted their precipitous decline today after the Chinese fintech software developer said that rumors that Chinese fintech giant Ant Financial Services Group is preparing to branch into financial IT software in direct competition with Hundsun are not true.

Hundsun’s stock price [SHA:600570] was trading down 1.1 percent at CNY36.79 (USD5.12) as of 2 p.m. China time, after nearly plunging by the exchange-imposed limit yesterday.

Hundsun has spoken with Ant and the firm, which indirectly owns Hundsun through a unit, has no plans to form its own financial IT software division, Hangzhou-based Hundsun, which provides one-stop financial solutions for clients in the securities, futures, public fundraising and other fields, said yesterday. No further details were given.

Reacting to the rumor, institutional investors offloaded CNY656 million (USD91.2 million) of Hundsun’s shares yesterday, causing the stock price to plummet 9.92 percent to the lowest level this year, but it recovered to close down 7.8 percent at CNY37.22.

The two firms are closely connected. Ant indirectly controls Hundsun through its unit Hangzhou Hengsheng Electronic Group, which owns 20.7 percent of Hundsun, according to Hundsun’s first-quarter report.

Editor: Kim Taylor