The rules add to a barrage of recent steps by regulators to rein in consumer borrowing and reduce risks. Ant, China’s largest provider of online consumer loans, has relied on the business for its biggest chunk of revenue. In total, Ant has issued about 1.7 trillion yuan in micro consumer loans, mainly through third-party banks. In anticipation of tighter rules, Ant is planning to apply for a financial holding license through its Zhejiang Finance Credit Network Technology Co. unit, according to its IPO prospectus. Another way Ant could seek more leverage is via a new consumer finance entity it’s setting up.

Source: Mint September 17, 2020 01:18 UTC