China pushes for restructuring of Ant Group
Ant said it would establish a rectification working group and fully implement regulatory requirements
Stocks impacted: Ant Group Co Ltd (6688)
China’s central bank had asked Ant Group Co Ltd. to shake up its lending and other consumer finance operations on Sunday. As a reminder, a month ago, Chinese regulators suspended the payments giant’s $37 billion initial public offering in Shanghai and Hong Kong over regulatory changes. Now, regulators have urged the company to rectify financial regulatory violations, including in its credit, insurance, and wealth management businesses, and overhaul its credit rating business to protect personal information. Ant also needs to be fully licensed to run a personal credit business, be more transparent about third-party payment transactions. According to the People’s Bank of China Vice Governor Pan Gongsheng, Ant should set up a separate holding company to ensure capital adequacy and regulatory compliance. In turn, Ant said it would establish a rectification working group and fully implement regulatory requirements.
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