Ant Group is reportedly planning to restructure its massive consumer credit business, with Japanese media citing sources familiar with the matter as saying the group will reorganize a large number of its operations under a financial holding company structure to increase transparency, as required by Chinese regulators.
Alibaba will move its mutual fund and insurance sales, as well as its loan-brokering business, to this holding company, with Ant as the parent company, the daily financial report said. The business restructuring may include Tianhong Fund, operator of the BalancePay money market fund, and Net Merchant Bank, which provides online loans to small and medium-sized enterprises.
The Chinese government has asked that all businesses requiring financial licenses be brought under the holding company, but it’s unclear whether Alipay will be included, the source said.
Daily Finance cited sources as saying that Ant Group will reorganize a large number of its businesses under the umbrella structure of a financial holding company, as required by Chinese regulators, to enhance transparency.
Bloomberg also reported earlier that Ant plans to restructure its consumer credit business so that the company can continue its lending business across China under new regulations that would otherwise impose significant restrictions on its most profitable business.
Recent Comments