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.
Based on a Feb. three report by Bloomberg, Chinese language regulators have agreed on a restructuring plan that can 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 much 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.
Based on 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 firms spanning a number of monetary enterprise strains.
The brand new holding standing will reportedly have essential implications for Ant Group by way of its deliberate preliminary public providing. Based on 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 should take for authorities to give you an inventory resolution.
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 develop into the biggest IPO in historical past. The $37 billion providing was subsequently halted by Chinese language authorities amid considerations about Ant’s measurement in addition to new guidelines requiring on-line platforms to supply extra of their very own funding for organized loans.
Ant Group ultimately 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 look since late 2020, after almost three months of intense hypothesis about his whereabouts.