Report: Ant strikes deal with Chinese regulators on restructuring plan

The plan reportedly involves folding Ant’s technology offerings in areas like blockchain and food delivery into the holding company, according to sources. But it’s unclear whether payments business Alipay and other companies that Ant operates will be added as well.

Ant declined to comment on Tech in Asia‘s query about the overhaul.

The company is expected to make an official announcement about the matter before the start of China’s Lunar New Year holiday next week, the report noted. Meanwhile, Ant is also weighing a potential initial public offering without a clear timeline.

Under the financial holding company structure, Ant would likely be subject to more capital restrictions, potentially crippling the firm’s ability to lend more and slowing the growth of its most profitable units, as per another Bloomberg report.

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The move comes amid reports stating that China’s central bank wants Ant to put its wealth management and insurance distribution businesses as well as minority-owned online lender MYbank into a financial holding company.