Connect with us

Hi, what are you looking for?

Tech

Ant Wins China’s Approval to Set Up Consumer-Finance Company


Ant Group’s headquarters in Hangzhou, China.



Photo:

Qilai Shen/Bloomberg News

China’s banking and insurance regulator said Thursday that it had approved an application by Ant Group Co. to set up a consumer-finance company, the first milestone in the financial-technology giant’s restructuring of its business.

Ant will hold a 50% stake in the new entity, registered in the Southwestern municipality of Chongqing, with the rest held by six other shareholders. The company, Chongqing Ant Consumer Finance Co., is licensed to conduct consumer lending and other operations. It will hold Ant credit services Huabei and Jiebei, which have been used by almost half a billion people in China.

Ant, a mobile-payments company controlled by billionaire

Jack Ma,

has been forced to overhaul its business after Chinese authorities canceled its initial public offering in November.

One of the areas that drew Beijing’s ire was Ant’s colossal consumer-lending business. At the end of June last year, people who had borrowed money from Ant’s platforms had a total of the equivalent of $271.1 billion in outstanding loans.

Ant originated most of the loans in partnership with commercial banks, which provided the bulk of the funding for the debt. Many of the loans were taken out by young people without established credit histories. Regulators frowned upon Ant’s activities because they encouraged some people to borrow and spend beyond their means, and created risks for the banks that supplied funds for the loans.

Write to Jing Yang at Jing.Yang@wsj.com

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



Source link

Leave your vote

Comments

0 comments

You May Also Like

Politics

Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae.

Finance

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.

Politics

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Finance

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.