The Chinese authorities in November last year thwarted the public offering of shares of Ant Group, during which the Alibaba subsidiary hoped to raise $ 37 billion for its development. Now regulators are pushing for a separate Ant division that handles customer credit histories. In a couple of years, the company will be able to return to preparing for a public offering.
According to Reuters, China’s Ant Group processes the personal data of more than a billion customers, acting as an intermediary between Chinese citizens and about a hundred retail lending banks. Using special algorithms, Ant Group analyzes consumer activity, based on the data obtained, individual credit ratings, which it shares with financial institutions. Ant Group charges a commission of 30-40% of the loan rate for its services.
Until now, this activity was poorly controlled by the laws of the PRC, but the authorities decided to put things in order in the field of financial technology. According to the source, the separation of the business for working with customer credit histories into an independent structure is one of the conditions that regulators insist on as part of the transformation of Ant Group’s business. After the restructuring, the holding should retain the ability to carry out other activities, but the authorities want to achieve greater transparency in the financial sector. Meeting these conditions will allow Ant Group to prepare for a public offering over the next two years. The company’s activities in the financial sector will be governed by generally accepted rules, which until then did not apply to it.
If you notice an error, select it with the mouse and press CTRL + ENTER.