Ant Group Gets Green Light to Cash In on Online Lending Rules
What’s new: Fintech behemoth Ant Group Co. Ltd., which is set to list in Hong Kong and Shanghai, has received approval from the China Banking and Insurance Regulatory Commission to set up a consumer finance company in the southwestern city of Chongqing.
Software services provider China TransInfo Technology Co. Ltd. was notified of the approval by Ant Group on Thursday, which allows it to jointly set up the consumer finance company with Ant Group, medical device company Jiangsu Yuyue Medical Equipment and Supply Co. Ltd. and several other companies, China TransInfo said in a Friday filing (link in Chinese) to the Shenzhen Stock Exchange.
Ant Group is set to hold 50% of the new company, according to an August filing by Yuyue Medical.
What’s the background: The regulatory approval came ahead of Ant Group’s widely anticipated IPO, as it aims to accelerate the growth of its online lending business.
Ant Group is just one of many companies in the online lending business eyeing consumer finance licenses to take advantage of rules that allow such firms to lend a lot more than typical microlenders.
Quick Takes are condensed versions of China-related stories for fast news you can use.
Tang Ziyi contributed to this report.
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