Chinese regulators have approved Alibaba’s fintech affiliate Ant Group’s RMB 10.5 billion ($1.5 billion) fundraising plan for its consumer finance unit Chongqing Ant Consumer Finance, according to a notice published by the Chongqing unit of the China Banking and Insurance Regulatory Commission. This will increase the unit’s capital from RMB 8 billion to RMB 18.5 billion. Under this fundraising plan, Ant Group will contribute RMB 9.25 billion to maintain its 50% controlling stake in Chongqing Ant Consumer Finance, while the wholly-owned technology subsidiary of state-owned Hangzhou Finance and Investment Group Co. will hold 10%, making it the second-largest shareholder. The fintech giant that owns consumer credit products Huabei and Jiebei had plans of increasing its capital by RMB 22 billion at the end of 2021, but the currently approved plan falls short of that figure. [CBIRC, in Chinese]
