China’s Ant Group to form a financial holding company after regulatory clampdown

Regulators have instructed Ant Group to form a financial holding company under their supervision as well as shrink its money market fund Yu’ebao. The revamp sets the clock ticking again on Ant Group’s countdown to IPO. — SCMP

Ant Group, controlled by Chinese billionaire Jack Ma, said on Monday it will apply in its entirety to become a regulated financial holding company after China’s top regulators publicly mapped out a blueprint for overhauling the planet’s largest financial technology company.

Ant, which operates the ubiquitous mobile payments platform Alipay, will place all of its financial-related activities in a holding company overseen by Beijing-based watchdog agencies, including its credit origination platform, its investment technology unit and its budding insurance operations. It will also create a licensed personal credit reporting company as part of its efforts to strengthen the protection of users’ data.