Ant Group has reportedly reached a restructuring agreement with the Chinese regulator to turn the fintech firm into a financial holding company.

Similar to banks, the holding company will now be subject to capital requirements, Bloomberg reported.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The restructuring plan includes all of Ant’s businesses such as its blockchain and food delivery technology products.

Initially, Ant proposed to put only its financial operations into the new holding company, the report added citing people familiar with the matter.

The overhaul may officially take place before the start of China’s Lunar New Year holiday next week.

The latest development a month after the government of China planned to nationalise Jack Ma’s Ant and Alibaba Group, which owns one-third of Ant.

This follows a pledge by the People’s Bank of China (PBoC), the country’s central bank, to step up the “prudential oversight” of the financial activities of online platforms in the country.

The agreement is in line with a December 2020 report, in which the central bank ordered the online payments giant Ant Group to overhaul its businesses.

In the same month, the China Banking and Insurance Regulatory Commission (CBIRC) and the PBoC were planning to impose “special and innovative regulatory measures” on fintech giants including Alibaba.

In November, China slammed the brakes on Ant’s $37bn listing, which was poised to become the largest stock market debut worldwide.

According to the Bloomberg report, Ant is still exploring possibilities to revive its initial public offering (IPO) listing.