Ant Group considers financial holding co structure – report
Ant Group, the parent company of China’s largest digital payment platform, Alipay, is considering a shift to a financial holding company structure, according to a report by Nikkei.
Referring to a source with knowledge of the situation, Nikkei explains that the move is set to bolster transparency at the behest of Chinese regulators.
Ant Group’s loan intermediary business and sales of mutual funds and insurance are poised to become subsidiaries of the holding company, with Ant to be the parent. The restructuring would also cover MYbank and likely Tianhong Asset Management.
The source told Nikkei that the authorities have requested that “all businesses requiring a financial license go under the holding company”. Whether this includes Alipay is not yet known.
Let’s recall that, in November 2020, Ant Group abandoned its planned listings in Hong Kong and China. On November 3, 2020, the company confirmed that it was notified by the relevant regulators in the PRC today that its proposed A Share listing on the STAR Market was suspended.
According to the Chinese regulators, the company may not meet listing qualifications or disclosure requirements due to material matters relating to the regulatory interview of Ant’s ultimate controller, its executive chairman and its chief executive officer by the relevant regulators and the recent changes in the Fintech regulatory environment.
Consequently, the concurrent proposed H Share listing on the Main Board of The Stock Exchange of Hong Kong Limited was also suspended.