Ant Group reaches deal with China’s financial regulators on business overhaul – sources
- Ant Group is likely to place credit, investment and insurance platforms in a holding company overseen by Beijing-based watchdogs
- Regulators shelved Ant Group’s US$34.5 billion IPO on November 3 over systemic risk and privacy concerns
China’s financial regulators and Ant Group, controlled by Chinese billionaire Jack Ma, have agreed a plan to overhaul the planet’s largest financial technology company, according to people familiar with the matter.
The scheme involves Ant Group placing its major businesses into a financial holding company overseen by Beijing-based watchdogs, including its fabulously lucrative credit origination platform, its investment technology unit and its budding insurance operations, the people familiar said.
Regulators abruptly shelved Ant Group’s US$34.5 billion dual listings in Shanghai and Hong Kong on November 3, over concerns that the Hangzhou-based firm posed a systemic risk to the country’s financial system and was in breach of consumers’ privacy. Soon afterwards, Beijing unleashed a raft of new fintech regulations and an antitrust inquiry into the country’s technology sector.
Ant Group, which operates the ubiquitous Alipay mobile payments platform, has been preparing to restructure its businesses to comply with the new rules since even before launching its initial public offering (IPO). An Ant Group spokesman declined to comment on the firm’s discussions with regulators.
