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FINANCE

Ant Financial Crawls Out From Heap of New Regulation

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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