Ant Group Co Ltd is considering folding most of its online financial businesses, including consumer lending, into a holding company that would be regulated like traditional financial firms, two people with direct knowledge of the matter said, - Reuters reports.
The regulators, mainly the central bank, want Ant to fold its wealth management and insurance distribution businesses as well as minority-owned MYbank online lender into a financial holding company, one of the sources told Reuters.
It was not clear if Ant’s payments business Alipay, which was launched in 2004 and is second-biggest revenue generator for the group after consumer lending, would also come under the holding company structure.
Ant declined to comment.
Beijing is also seeking to potentially take a larger stake in billionaire Jack Ma’s businesses, the Wall Street Journal reported on Tuesday, citing unidentified Chinese officials and government advisers.
Alibaba Group and Ant did not immediately respond to Reuters’ requests for comment on the report, which provided no details on which of the businesses the government is eyeing.
The People’s Bank of China (PBOC), the central bank, said in a statement to Reuters that Ant is drafting a plan to set up a financial holding firm, and that the company should ensure that all its financial operations are placed under regulatory supervision.
China’s banking and insurance regulator on Tuesday warned consumers to guard against borrowing spurred by internet finance platforms that hide the real costs of such debt.
