One of China’s state-owned finance executives will direct 24 per cent stake in Ant Group finance, with a shareholding of Rmb22bn ($ 3.5bn) in revenue that will triple its subscriptions three times.
China Cinda Asset Management, the country’s finance ministry, said in a statement to the Hong Kong stock exchange to provide Rmb6bn, giving them 20 percent to Chongqing Ant Consumer Finance. Cinda also owns 4 percent through Nanyang Commercial Bank.
Ants are under the control of Jack Ma, who has an internet problem, and is being pressured by Chinese authorities to expand his headquarters and notify state investors since his $ 37bn donation, which would have been the largest in the world, closed for several days. in the past. first appearance on his team in November 2020.
Ma, a former full-time player at Chinese and international conventions, has not appeared in public since Ant’s IPO was abolished. Ma was spotted on holiday on her Spanish luxury boat in October – her the first definite outdoor trip since Ant and Alibaba, its well-known ecommerce segment, were overseen by regulators.
Ants were was granted permission due to its financial share from Chongqing operated by Chinese banks in April.
When it was established, Nanyang Commercial Bank held 15 percent of the unit and China Huarong Asset Management 5 percent.
Both Nanyang and Huarong will be reduced by the promotion of the capital, which makes Cinda second in the largest category. Ant Group will maintain a 50 percent direct interest rate on the company.
In her remarks, Cinda said the funding will enable them to settle into China’s fastest-growing online companies, allowing them to “establish close alliances with leading donors”.
At its peak, Ant’s financial services service provided one-tenth of China’s consumer credit unsecured loans through its Alipay program. The group’s state-owned banks protested the government’s actions Kingdom of Jack Ma In the past year, Ants have unfairly benefited from the meager income and other legal requirements.
Cinda has established itself as the most important arm in government.
In addition to the major component that will take over Ant’s consumer finances, Cinda’s representative is also on the risk management committee set up by China Evergrande, a businessman with a lot of debt that was recently described as “banned” by Fitch Ratings.
In contrast, Huarong has moved from one crisis to another this year. In January, their former leader, Lai Xiaomin, was killed because of corruption. He was sentenced by the Tianjin city court to Tianjin harbor three weeks earlier.
In August Huarong announced a loss of $ 16bn and said it had received anonymously strategic investments from other state-owned financial companies including Cinda.
Additional reports of Ryan McMorrow in Beijing