Ant Group's $37 billion listing has been suspended in both Shanghai and Hong Kong just 48 hours before it was expected to set the world's largest-ever stock market debut.

The Shanghai stock exchange was first in announcing that it had suspended Ant's initial public offering on its STAR market, which prompted the freeze for the Hong Kong leg of the dual listing, according to a report from Reuters.

Ant said that its listing had been suspended by Shanghai following an interview between regulators, Ant founder Jack Ma, Ant's executive chairman Eric Jing and chief executive Simon Hu. The regulators stated the reason for the hold is that Ant may not meet listing qualifications or disclosure requirements within its recently changed fintech regulatory environment.

At the end of October, Ma had called financial regulation outdated and badly suited to companies trying to use technology to drive financial innovation.

But with banks heavily using micro-lenders or third-party technology platforms like Ant for underwriting consumer loans, and fears of rising defaults and deteriorating asset quality in a pandemic-hit economy, Chinese authorities have drafted new rules for online micro-lending. The new rules include a section specifically calling out microlenders, urging them to "strengthen their operations and management, standardize equity management, capital management, and consumer rights protection work, collect and use customer information in accordance with the law, and not induce borrowers to over-debt."

In a statement to CNBC, an Ant Group spokesperson apologized for the suspension of its IPO and stated the company will work to comply with the regulatory concerns of the Hong Kong and Shanghai stock exchanges.

"Ant Group sincerely apologizes to you for any inconvenience caused by this development," the statement said. "We will properly handle the follow-up matters in accordance with applicable regulations of the two stock exchanges. We will overcome the challenges and live up to the trust on the principles of: stable innovation; embrace of regulation; service to the real economy; and win-win cooperation."