Ahead of its blockbuster IPO, e-commerce giant Alibaba's fintech arm is working with partners to set up a company to offer online loans to domestic consumers.
Ant Group, which recently rebranded from Ant Financial, is in the process of securing a license for a consumer finance firm, which will be based in the southern city of Chongqing and have about $1.2 billion in registered capital, «Reuters» reported on Tuesday,
The firm will hold a 50-percent stake in the venture, with partners Nanyang Commercial Bank and China Transinfo holding 15 percent and 10 percent respectively, alongside Contemporary Amperex Technology, whose stake was not disclosed, the report said.
According to «Reuters,» the move is part of a broader push by Chinese tech majors to shore up its financial services closer to home as they deal with growing scrutiny over their technology business overseas and a growing trade war with the U.S.
Upcoming IPO
Ant grew out of mobile payment platform Alipay, which counts 900 million users in China. It has in recent years expanded its range of products to also offer wealth management, business loans and insurance. Digital financial services contributed more than half of Ant Group’s overall revenues for the fiscal year ended March 31, its prospectus said.
In July, Ant Group announced long-awaited plans for a dual listing in Hong Kong and Shanghai, which would give it a $200 billion valuation. It will list 10 percent of its shares in Shanghai and 5 percent of its shares in Hong Kong, aiming to raise $30 bilion.
