- Alibaba Group Holding Limited BABA founder Jack Ma’s Ant Group Co is likely to apply for a critical financial license by June, Bloomberg reports.
- The move signals the fintech giant is getting closer to satisfying China’s financial regulators, who quashed its listing ambitions in 2020. It followed a broader crackdown that erased over $1 trillion in market value.
- The People’s Bank of China looks to accept Ant’s application to become a financial holding company and initiate a lengthy review.
- The regulators will focus on Ant’s capital strength, business plans, and the compliance of its shareholders and senior management.
- The development implies that Ant can maintain its financial operations under the central bank’s supervision as a shrunk enterprise, with curbs on consumer finance growth and its universal payments app.
- Shares of Alibaba, which owns a third of Ant, saw immense volatility recently as investors grew curious over Ant’s listing revival.
- China recently expressed plans to enhance regulation of financial holding companies and promote the healthy development of payment and fintech sectors.
- Recently JD.com, Inc JD Retail CEO Xin Lijun acknowledged that regulation was becoming more stable, which could contribute to the stability in the overall development of the internet sector and the market.
- Price Action: BABA shares traded higher by 3.79% at $109.13 in the premarket on the last check Thursday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.