Ant Group, Alibaba's financial affiliate, recently established a new Fintech firm after a harsh crackdown by Chinese regulators in the previous months.
According to public information, the new Fintech company is named Chongqing Ant Consumer Finance Co., Ltd. It was formally established on 5 June after receiving approval from the Chongqing bureau of the China Banking and Insurance Regulatory Commission (CBIRC).
The registered capital of the company reaches $1.25 billion (8 billion yuan), according to relevant filings. And Ant Group Co Ltd (6688.HK) contributed 4 billion yuan, accounting for 50% of the new Fintech firm.
In addition, the state-owned Nanyang Commercial Bank (NCB) contributed 1.200.8 billion yuan, accounting for 15.01% by share. And Tesla supplier Contemporary Amperex Technology Co Ltd (CATL) contributed 640 million yuan, accounting for 8%.
Huang Hao, president of the digital finance business group at Ant Group, holds the position of chairman of the new company.
According to the official website of Ant Group, Huang served as vice president of Ant Group from December 2015 to December 2016, general manager and executive director of MYbank from December 2016 to March 2019, and president of digital finance business group at Ant Group from March 2019 to now.
It is worth noting that since September last year, Ant Group received approval for the establishment of the new Fintech firm, during which the approval for its opening was suspended accordingly due to China's Internet regulation and other factors.
For this approval, the person, who is in charge of the non-bank department of the CBRC, said that Ant Consumer Finance Co., as a licensed financial institution, must be regulated according to law and strictly comply with the relevant regulatory provisions.
The person also said that according to the "rectification" plan, Ant Group should complete the rectification of its credit subsidiaries, including the virtual credit card product Huabei and short-term consumer loan provider Jiebei, within six months of the opening of the new company.
After finishing the rectification, Huabei and Jiebei will become the exclusive consumer credit products of Ant Consumer Finance Co. And the consumer credit issued by other financial institutions, which is with the help of data information provided by Ant Group, will no longer bear the name of Huabei and Jiebei.
(US$1 = 6.4004 yuan)
