China Regulatory Agency approves an Ant Group's plan to increase the registered capital of 10.5 billion yuan (RMB, the same, about 2 billion yuan) for its consumer financial sector, which marks the government's orderThe rectification of technology companies made progress.
The official website of Chongqing Banking Regulatory Supervision Bureau shows that according to the announcement on December 30, the Chongqing Banking Insurance Regulatory Bureau has approved the capital increase plan for Chongqing Ant Consumer Finance Company.Chongqing Ant Gold Corporation is a consumer finance company initiated by Ant Group. It was approved for opening in June 2021.
The approval documents show that the registered capital of ants increased from 8 billion yuan to 18.5 billion yuan.Bloomberg reports that the Ant Group, which contributed 5.25 billion yuan, will control half of its shares after the transaction is completed. A company under Hangzhou will hold 10%of the shares to become the second largest shareholder.
This solves a key obstacle to the Ant Group. After the first public offering (IPO) of the record in 2020, the Ant Group sought to meet the requirements of regulatory agencies.Chinese regulatory agencies have been suppressing shadow banks in the past few years to reduce economic risks. Ant Group is still waiting to obtain financial holding licenses, and will be more supervised like a bank.
It is reported that with the world's second largest economic activity, this approval is another signs of the softening of its huge Internet industry position in Beijing. The industry is traditionally an important driving force for growth.Last week, the game of companies such as Tencent was approved.
After the news of adding registered capital, Alibaba's stock price of Ant Group's affiliated company once rose 9%, and the Hang Seng Technology Index increased to 3.3%.Tencent's stock price rose nearly 4%, and Baidu soared 6%.
Daiwa Capital Markets Hong Kong LTD. Analyst Leon Qi wrote in a report that this move was regarded as a signal of the Ant Group's regulatory rectification.He said that once the financing is completed, the consumer finance department will be able to handle 1.1 trillion yuan of loans.
