Finance Loses Its Luster as JD.com Merges Lending Arm With Other Units
What’s new: Chinese e-commerce giant JD.com Inc. will merge its fintech arm with its artificial intelligence (AI) and cloud computing business and set up a new subsidiary called JD Technology Group, the company said Monday, highlighting tech services and downplaying the importance of its finance business, which has come under stepped-up regulations.
What’s the background: On Dec. 30, JD.com said it was considering spinning off its cloud and AI business into Jingdong Digits Technology Holding Co. Ltd., or JD Digits.
Last year, JD Digits filed an application to list on Shanghai’s Nasdaq-style STAR Market, but the IPO plan faces uncertainty as financial regulators tighten oversight of fintech companies.
The company’s prospectus (link in Chinese) issued in September showed that its growing online microlending business would not meet a string of new regulatory requirements, as the business generated a major share of the company’s total revenue.
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