Ant Group eyes selling stake in HK digital bank subsidiary

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Chinese fintech giant Ant Group may sell a stake in Ant Bank, its digital banking unit in Hong Kong, as it continues to overhaul its operations, sources familiar with the matter told Bloomberg.

Ant Bank, which has received approval from the Hong Kong Monetary Authority, is reportedly in talks with potential investors to strengthen its operations. The sales plan, however, is still in its early stages and subject to change.

The bank recorded approximately HK$232 million (US$30 million) in losses before tax for 2021, an increase from HK$172 million (US$22 million) the year before, according to its annual report.

Ant Group has been undergoing a major restructuring to comply with regulatory demands. Earlier this year, the company said its founder Jack Ma would give up control, reducing his voting rights from more than 50% to only 6.2%.

At around the same time, China had also greenlighted Ant Group’s plan to raise US$1.5 billion for its consumer arm.

See also: Behind Ant Group’s revived SEA ambitions

Currency converted from Hong Kong dollar to US dollar: US$1 = HK$7.84.