Ant Group has agreed with Chinese regulators on a restructuring plan to turn the fintech giant into a financial holding company, according to Bloomberg. Ant is also exploring reviving its IPO, which regulators halted in November, but the timeline remains unclear.
- Ant’s restructuring plan is the first big step of a lengthy overhaul process, as regulators draw up detailed capital requirements and other guidelines for companies that span multiple financial business lines.
- While the rules will provide regulatory clarity for Ant, they will force the company to slow the expansion that has made it China’s dominant fintech firm.
- Ant’s restructuring is part of the government’s campaign to increase supervision of the financial and technology sectors.
- The clampdown has fueled intense speculation over the status of Ant and Alibaba co-founder, Jack Ma.
- An official announcement of the overhaul is reportedly expected before the start of China’s Lunar New Year holiday next week.
As a financial holding company, Ant will now be subject to capital requirements similar to those for banks.