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Ant Group Jack Ma agreed on a business reorganization plan with Chinese regulators.
Jack Ma made concessions. Ant Group reorganizes the business for the sake of Chinese regulators – Bloomberg
Finteh-giant Anthe Group found a common language with Chinese regulators and will turn into a financial holding company with the requirements for the volume of capital as that of banks.
Ant Group billionaire Jack Ma and Chinese regulators agreed on a reorganization plan that will turn Fintech Giant into a financial holding company with similar banking requirements for capital. This is written by Bloomberg.
According to the sources of the publication, the agreed plan involves the transfer of businesses of the company, including its technological units in the field of blockchain and food delivery, to the holding company.
One of the first proposals ANT to the Chinese regulator provided for the inclusion in the new structure of only financial transactions, the publication notes.
Bloomberg interlocutors noted that the parties can officially announce the achievement of agreements before the start of the Chinese New Year holidays next week.
It is noted that the reorganization of the Ant Group business will be the first step in the long -term process of reforming the industry, since Chinese regulators develop detailed capital requirements and other leading principles for companies covering several financial areas of business. As the publication emphasizes, ANT reorganization is part of a wider state campaign to strengthen the supervision of financial and technological sectors
It is reported that Ant Group is still considering the possibility of re -entering the company to IPO. However, taking into account the renewal of the ANT structure, it is still unknown how much time the Chinese authorities will take to allow the company's access to the exchange.
Earlier, the head of the People’s Bank of China allowed an IPO ANT Group after the regulator’s issues to the company will be removed.
Recall that the problems of Jack Ma with the Chinese authorities worsened after in October 2020 he publicly criticized financial regulators and banks of China, accusing them of pawnshop thinking.
