Ant Group has agreed on a restructuring plan with China’s regulators that will turn the fintech giant into a financial holding company subject to capital requirements similar to those for banks, Bloomberg News reported.
Citing anonymous sources familiar with the matter, the report says that the overhaul will see all of Ant's businesses migrated to the holding company, including its technology offerings in areas like blockchain and food delivery.
The crackdown follows a move by Chinese regulators to impose tighter restrictions on fintech firms entering the banking market, a decision which led to the derailment of Ant's planned $37 billion IPO late last year.
Whether Ant will resume its planned float is a moot point, with the resolution of the new structure set to take some time. Any future IPO would likely attract a substantially reduced price tag, with the additional capital requirements likely to weigh heavy on the group's earnings.