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Deepti Sri · · 1 min readChinese regulator allows Ant to begin operations of new consumer finance unit
“China is allowing Jack Ma’s Ant Group to start operations at its consumer finance company, the first sign of progress after a regulatory crackdown torpedoed the fintech giant’s record listing,” Bloomberg reported.
Details:
- The China Banking and Insurance Regulatory Commission has sent Ant a notice, giving its finance unit the go-ahead to offer loans to individuals, issue bonds, and borrow from local financial institutions.
- To get the unit started, the company has to shift its outstanding loans and online lending operations to Chongqing Ant Consumer Finance. Ant will take a 50% stake in the unit, which will have a registered capital of 8 billion yuan (US$1.3 billion).
Context:
- Chongqing Ant Consumer Finance is backed by investors including Nanyang Commercial Bank, China TransInfo Technology Corp., and Contemporary Amperex Technology.
- China’s banking regulator added that Chongqing Ant Consumer Finance needs to comply with the law and disclose all information related to its borrowers, loan terms, annual interest rates and overdue loans.
Editing by Collin Furtado and Eileen C. Ang
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