Ant Group’s Consumer Finance Unit to Boost Its Capital to $4.7 Billion

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The shopper finance unit of China’s Ant Group will enhance the corporate’s capital to CNY 30 billion (roughly Rs. 35,377 crores) from CNY eight billion (roughly Rs. 9,434 crore), and introduce Four new strategic traders, an change submitting launched on Friday mentioned.

The unit, Chongqing Ant Consumer Finance, is below regulatory strain to fold Ant’s two profitable micro-loan companies Jiebei and Huabei into it, which might make it topic to guidelines and capital necessities much like these for banks.

China Cinda Asset Management, considered one of firm’s new traders and one of many nation’s 4 greatest state asset managers, mentioned it can make investments CNY 6 billion (roughly Rs. 7,075 crore) as a part of the train.

After the deal, China Cinda will turn out to be the second greatest shareholder with a 24 p.c stake within the shopper financing unit, together with a 20 p.c stake it holds straight and a Four p.c stake held by Nanyang Commercial Bank, a Cinda subsidiary.

Ant will retain a 50 p.c stake within the unit, Cinda’s submitting to Hong Kong Stock Exchange confirmed.

The submitting additionally disclosed the introduction of three different strategic traders into Ant’s shopper financing unit, together with Sunny Optics, Boguan Technology, a unit of NetEase, and Yufu Capital, an area funding arm of the Chongqing authorities.

Last month, Ant mentioned it was searching for to distinguish a part of its short-term shopper mortgage enterprise Jiebei, because it pursues a regulator-led restructuring.

© Thomson Reuters 2021

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