Ant Group has secured the approval of the People’s Bank of China to establish a financial holding firm, according to sources close to the matter.
- The PBOC has reportedly approved Ant’s application in May, indicating a possible easing of China’s crackdown on firms involved in technology which started late in 2020.
- As a financial holding firm, Ant will be subjected to capital requirements and regulations imposed on banks after being valued as a tech company in its initial public offering.
- A source said the firm is waiting for the final review of financial regulators, especially the PBOC, as it seeks to file a preliminary prospectus for its planned share offering, which could take place as early as July.
- Ant will first have to score a key financial holding license and finalize its restructuring before it can push through with the listing. It has already secured tentative approval to revive its IPO in Shanghai and Hong Kong.
BABA is up 11.58%, and AMZN is up 11.14% premarket.