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Ant Group to restructure as financial holding company

Friday 5 February 2021 12:56 CET | News

Ant Group has reached a restructuring agreement with the Chinese regulator to turn the fintech firm into a financial holding company.

Similar to banks, the holding company will now be subject to capital requirements. The restructuring plan includes all of Ant’s businesses such as its blockchain and food delivery technology products. Initially, Ant proposed to put only its financial operations into the new holding company.

The overhaul may officially take place before the start of China’s Lunar New Year holiday. The latest development happens a month after the government of China planned to nationalise Ant and Alibaba Group, which owns one-third of Ant.

The agreement is in line with a December 2020 report, in which the central bank ordered the online payments giant Ant Group to overhaul its businesses. In the same month, the China Banking and Insurance Regulatory Commission (CBIRC) and the PBoC were planning to impose ‘special and innovative regulatory measures’ on fintech giants including Alibaba.

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Keywords: Ant Group, China, restructuring, regulator, banking, holding company, nationalise
Categories: Banking & Fintech | Payments General
Countries: China
This article is part of category

Banking & Fintech