The Chinese financial services provider Ant Group will provide fewer loans to consumers in collaboration with banks.
The Chinese regulator has been hinting at possible measures to reduce those loans for a while, after which Ant and the banks decided to set a maximum on the loans themselves, writes Bloomberg news agency based on insiders.
Ant has grown particularly fast in recent years due to its consumer credit, which is offered in collaboration with many Chinese banks. Almost two-thirds of Fintech’s turnover came from there in the first half of last year.
That rapid growth should have led to the most expensive IPO ever, but it was banned by the authorities shortly before. Beijing believed that Ant was not complying with new guidelines. That step came after founder Jack Ma, who is also behind Ant’s parent company Alibaba, criticized the Chinese rulers for holding back innovation in the financial sector.
Ant has now reached an agreement with the financial regulators about the regulations. In doing so, Ant would have to meet comparable requirements to a bank.
All parts of Ant must also be placed in a financial holding. The Fintech had previously tried to keep its technological offer in the field of blockchain and meal delivery outside of it. Previous speculation that Ant might be forced to divest parts now seems unlikely.