- Alibaba Group Holding Limited (NYSE: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 (NASDAQ: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.
- Photo via Wikimedia Commons
