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Ant Group receives approval for consumer finance subsidiary, partnered banks and other firms
2021/06/04 05:57:39

Jun 04, 2021 (China Knowledge) - The China Banking and Insurance Regulatory Commission (CBIRC) released a statement on Thursday approving Ant Group’s opening of its subsidiary consumer finance company, Chongqing Ant Consumer Finance, following regulatory pressure for the group to obtain necessary licenses and adopt more comprehensive oversight.

Ant Group will hold a 50% stake in Ant Consumer Finance, which has been licensed to conduct operations including consumer lending and loan to domestic financial institutions.

Other shareholders include several banks, as well as electric car battery maker Contemporary Amperex Technology (300750).

This is the latest step in the finance group's business rectification plan, after regulatory checks last year identified issues such as corporate governance flaws and foul play in regulatory arbitrage.

Under the plan, Ant Consumer Finance will take over the consumer credit businesses from Ant’s micro-credit firms “Huabei” and “Jiebei”. The two micro-credit firms will exit the market within the one-year transitional period after the consumer finance company opens.

Ant Group says that it will work together with its shareholders to meet consumers' financial services needs and improve the quality of financial services, risk prevention and control.

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