Ant-backed credit rating firm gets central bank approval in China after 3-year wait

The joint venture, 35 per cent owned by Ant Group, had a prolonged wait after previously licenced firms were approved within weeks of applying

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The headquarters of Ant Group in Hangzhou on November 3, 2020. Photo: Shutterstock

Published: 5:30pm, 12 Nov 2024

China’s central bank has granted a personal credit-reporting licence to an Ant Group-backed firm after a three-year wait, making it the mainland’s third agency licensed to collect credit data on individuals.

The People’s Bank of China (PBOC) granted the licence to Qiantang Credit Rating – based in Ant’s hometown of Hangzhou, capital of eastern Zhejiang province – allowing it to operate a personal credit-reporting businesses through November 2027, the central bank announced in a statement on Monday.

Qiantang applied for the licence in November 2021, when the company revealed that its largest shareholders were state-owned Zhejiang Tourism Investment Group and privately-held Ant, each owning 35 per cent of the joint venture. Qiantang has 1 billion yuan (US$139 million) in registered capital.

Ant is the fintech affiliate of Alibaba Group Holding, owner of the South China Morning Post.

Qiantang was set up amid a sweeping overhaul that restructured Ant into a financial holding company after regulators pulled the plug on its highly anticipated US$34 billion initial public offering in 2020.

While the PBOC runs its own Credit Reference Centre, it has been encouraging the private sector to offer services to individuals and small businesses.