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FINANCE

Ant Financial Crawls Out From Heap of New Regulation

By Wu Hongyuran and Liu Xiao
In March, the China Securities Regulatory Commission required all money market fund managers to set aside at least 0.5% of their net assets as provisions for bad debt, lowering returns for funds like Ant Financial's highly profitable Yu’e Bao. Photo: VCG
In March, the China Securities Regulatory Commission required all money market fund managers to set aside at least 0.5% of their net assets as provisions for bad debt, lowering returns for funds like Ant Financial's highly profitable Yu’e Bao. Photo: VCG

As Ant Financial moves toward an initial public offering that could be one of the largest for a new wave of Chinese financial technology (fintech) firms, the offshoot of e-commerce giant Alibaba Group Holding Ltd. is taking hits at two of its most promising new business segments.

Last week Ant’s Yu’e Bao, its biggest investment product, set a new daily limit for fund subscriptions, continuing curbs that began last summer. Tianhong Asset Management, which manages funds in Yu-e Bao, said it took the step to slow down growth at a money market fund that is already the world’s largest.

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