Jack Ma's Ant Group gains approval to operate consumer finance firm
Apparently, Chinese authorities’ attack on Ant Group controlled by Alibaba founder Jack Ma has ceased. Chinese authorities reconsidered their position and allowed the fintech group to partially operate a consumer finance company.
This move signals a welcome change in the government's attitude towards the e-commerce giant. As a result, Ant Group will receive a 50% stake in the new entity. At the same time, the company must provide 4 billion yuan of capital (about $626 million), China's banking and insurance regulator said. The remaining 50% will be held by six other shareholders.
Despite the fact that Ant is forced to buy back shares in its own business, this is a positive change. Notably, after Jack Ma criticized Chinese authorities for their efforts to regulate the technological sphere last year, Beijing quashed the initial public offering of Ant Group, and the company had to transform its business, handing over control of it to the government.