Ant Group continues to restructure the organization according to the framework set by the government. They are preparing to reorganize their foundation to become a holding company in the financial services regulated by the People’s Bank of China. In response to the pressures and criteria set by the government financing requirements.
China’s financial regulator ordered the group to reorganize its structure by doing five essential things:
- Returning to the payment service business.
- Protection of personal information in the credit business.
- Setting up a holding company as a financial service provider.
- Improving good corporate governance.
- An emphasis on business discipline in securities and asset management.
Which the group agreed with the mentioned requirements and submitted the draft.
The restructuring plan turns Ant Group platform as the leader in digital payment services to become a technology-based service company.
Ant Group is valued at more than $300 billion, it’s a market value higher than the largest bank in the world. Although, Before the announcement to join the stock exchange of Ant Group the listing was suspended in November.
Previously, Ant Group executives and shareholders had never imagined of establishing Ant Group as a financial services group.
Ant Group was planning to appoint one of its subsidiaries to act as a financial holding company that will manage the financial services business and asset management.
All of the aforementioned restructurings will allow government to monitor all activities under Ant’s operations, also preventing exploitation of legal restrictions or masking data. However, the regulated business units are somewhat compact.
Although, the group is still in the process of restructuring and expects to finalize all plans before the Chinese New Year. All restructuring plans must be reviewed by the Financial Stability and Development Committee of the Chinese government first.
The financial service regulators have expressed their satisfaction with the progress of the Ant Group’s restructuring process as suggested by the State Unit Agency.