What’s new: China’s top banking regulator on Thursday denied (link in Chinese) rumors that it planned to require banks and other financial institutions to suspend their partnerships with Ant Group Co. Ltd. to issue joint loans. Joint loans contribute a significant portion of the fintech giant’s revenue but have faced increased regulatory scrutiny recently.
What’s the background: Earlier this week, Ant Group’s blockbuster $34.5 billion listing was suspended amid regulators’ concerns over its highly leveraged online lending business.
As of the end of June, Ant Group’s licensed nonbank financial subsidiaries contributed only 2% of the more than 2.1 trillion yuan ($313 billion) in credit balance enabled through its platform, according to the company’s prospectus. That portion falls far short of the minimum 30% required in new draft rules released Monday.
Read more Analysis: Stricter Regulations Challenge Ant Group and Fintech’s Rapid Rise
Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Marcus Ryder (marcusryder@caixin.com)
