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China’s Cinda Scraps $944m Investment In Ant Finance Unit

Chongqing Ant Consumer Finance is already under pressure from Beijing to absorb the group’s two micro-loan businesses Jiebei and Huabei


Cinda scraps Ant investment
The Ant Group logo at the World Artificial Intelligence Conference in Shanghai, China, last year. Photo: Reuters

 

China Cinda Asset Management is scrapping plans to buy a 20% stake in the consumer finance arm of Ant Group, worth 6 billion yuan ($943.83 million).

The investment would have increased Cinda’s interest in Chongqing Ant Consumer Finance Co Ltd to 24%, making the asset manager its second-biggest investor. Cinda already owns a 4% stake in the Ant unit through a subsidiary.

“After further prudent commercial consideration and negotiation with [Chongqing Ant Consumer Finance], the company proposed not to participate in the share subscription,” Cinda said in a filing to the stock exchange on Thursday. 

Chongqing Ant Consumer Finance is under regulatory pressure to fold Ant’s two lucrative micro-loan businesses Jiebei and Huabei into it, which would make it subject to rules and capital requirements similar to those for banks. 

Cinda, one of the country’s four biggest state asset managers, said the withdrawal would not have any material impact on the company.

 

  • Reuters with additional editing by Sean O’Meara

 

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Sean OMeara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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