BEIJING : The announcement of a nearly $1 billion fine by Chinese regulators on Ant Group has drawn a line under the fintech giant's woes and given hope to investors that a regulatory crackdown on China's broader technology sector is over.
After the fine, the next step would be to obtain the financial holding license, which is crucial for reviving any listing plans by Ant. A second license Ant is waiting to procure is one for a personal credit reporting company. China's central bank said in November 2021 that it had accepted the application to set up Qiantang Credit Rating, a personal credit-scoring joint venture with Ant Group expected to own 35 per cent.The resolution of Ant's regulatory woes has revived talk of whether the company's listing could be back on the cards.
Others have said that Ant's announcement in January that its founder and billionaire Jack Ma will give up control of the Chinese fintech giant could also slow plans to revive its long-sought IPO as China's domestic A-share market requires companies to wait three years after a change in control to list.Ant's announcement on Saturday that it will offer to buy 7.6 per cent of its equity interest is set to give some investors an opportunity to exit.