Alibaba Holding Group (NYSE: BABA) subsidiary Group of ants to share credit data from its Huabei consumer lending business with China’s central bank as part of a Beijing regulatory move to tighten its grip on the fintech sector, CNBC reported Thursday, citing a statement from the company.
What happened: Ant Group’s microcredit service, known as Huabei, will share the account opening date, line of credit amount and repayment status with the People’s Bank of China.
Chinese regulators have ordered a restructuring of Ant Group after the company’s plans for a successful $ 37 billion listing in November were suspended.
See also: Alibaba’s Ant Gets Regulatory Approval for Consumer Finance Company in China
The company has since been undergoing restructuring to transform itself into a financial holding company which falls under the jurisdiction of the Chinese central bank. Chinese regulators have acted on the assumption that companies like Ant act as financial institutions but have not been regulated like them.
Why is this important: About 500 million people used the services of Ant Huabei subsidiaries and short-term consumer loan provider Jiebei in the 12 months leading up to June 30, 2020, the fintech giant said in its IPO prospectus.
Chinese technology platforms have resisted data sharing for years, a key asset that helps them run their operations, manage risk and attract new customers, in line with Reuters.
Price action: Baba stock closed 1.14% higher at $ 151.89 on Wednesday.
Â© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.