Ant Group, the monetary affiliate of China’s e-commerce large Alibaba, has reportedly reached an settlement with Chinese language regulators over the corporate’s standing.
In response to a Feb. 3 report by Bloomberg, Chinese language regulators have agreed on a restructuring plan that may flip Jack Ma’s fintech large right into a monetary holding firm.
Ant Group’s new standing will reportedly make it topic to capital necessities just like these for Chinese language banks. The settlement will affect a large scope of Ant’s enterprise operations, together with its know-how choices in areas like blockchain and meals supply, unnamed sources informed Bloomberg.
In response to the report, the restructuring plan marks step one of an upcoming overhaul, which is predicted to be a steady course of as regulators are set to develop detailed capital necessities and different pointers for corporations spanning a number of monetary enterprise strains.
The brand new holding standing will reportedly have essential implications for Ant Group when it comes to its deliberate preliminary public providing. In response to Bloomberg, Ant remains to be exploring alternatives for its potential IPO, however the brand new holding framework may make it harder as it’s unclear how lengthy it can take for authorities to provide you with a list determination.
As of publishing time, Ant Group has not responded to Cointelegraph’s request for remark.
As beforehand reported, Ant Group filed its IPO in Hong Kong and Shanghai in August 2020, projecting to grow to be the biggest IPO in historical past. The $37 billion offering was subsequently halted by Chinese language authorities amid concerns about Ant’s dimension in addition to new guidelines requiring on-line platforms to offer extra of their very own funding for organized loans.
Ant Group finally grew to become the topic of an antitrust investigation in late 2020. The most recent information about Ant’s settlement with regulators comes shortly after Ma made his first public appearance since late 2020, after almost three months of intense hypothesis about his whereabouts.