HONG KONG :China's central bank has accepted Ant Group's application to set up a financial holding company, three people with knowledge of the matter said, a key step in finishing a year-long revamp of Jack Ma's fintech business and reviving its stock market debut.
Although Ant has been working with financial regulators for months on a broad revamp, the central bank's agreeing to review the application signals the company could get its long-awaited license soon, said the sources, who asked not to be named due to confidentiality constraints. As part of that overhaul, the PBOC in December 2020 told Reuters in a statement that Ant was drafting a plan to set up a financial holding firm and that Ant should ensure that all its financial operations were placed under regulatory supervision.
To formally revive its mega-listing, Ant has to secure the key financial holding license and complete its restructuring, the sources said. Apart from the financial holding company license, Ant's personal credit-scoring joint venture has applied for a permit, as part of the fintech major's business revamp.
Ant will own 35 per cent of the venture, and the only non-state-backed shareholder, Transfar Group, will hold 7 per cent, while Hangzhou Xishu will get the remaining 10 per cent, the PBOC said in November.