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Ant Group Mulls Selling Stake in Baihang Credit Co.
Ant Group Co. is contemplating selling its stake in Baihang Credit Co., a personal credit reporting firm, as it anticipates license approval for a similar business entity. This move aligns with regulatory guidance that restricts entities to holding only one license per business category. Ant's 8% stake in Baihang is likely up for sale due to this policy.
The inside source spoke on the condition of anonymity as the discussions are private. Ant Group has yet to comment on these matters. Alongside its stake in Baihang, Ant also holds a substantial 35% ownership in Qiantang, which is currently seeking to become the third firm licensed for personal credit assessments. According to central bank Governor Pan Gongsheng, the People's Bank of China is working with Zhejiang’s government to facilitate this application.
Baihang's Formation and Stakeholders
Established in 2018, Baihang Credit Co. was created under the supervision of the central bank. The National Internet Finance Association of China, backed by the government, holds a dominant 36% stake in the company. Ant Group and Tencent Holdings Ltd. are among the eight other shareholders, each holding 8% stakes. Previous reports indicated that Ant is negotiating to sell its Baihang stake to Tencent. However, Tencent has not responded to inquiries on the matter.
Qiantang’s Stakeholders and Financial Structure
Qiantang boasts registered capital of 1 billion yuan ($138 billion), with the Zhejiang Tourism Investment Group owning 35% of it. Other investors in Qiantang include the Zhejiang Electronic Port and the Hangzhou Finance & Investing Group.
Regulatory Challenges and Ant's Future Prospects
More than three years have passed since regulators thwarted Ant Group's initial public offering. The company is still in the process of securing a financial holding license, which is crucial for reviving its potential public listing. The regulatory scrutiny and subsequent adjustments in strategy highlight the ongoing complexities in China’s financial landscape.
