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China's Ant Group increases registered capital by 47% to $5.4 billion

China's Ant Group increases registered capital by 47% to $5.4 billion
China's Ant Group increases registered capital by 47% to $5.4 billion   -   Copyright  Thomson Reuters 2021
By Reuters

BEIJING – China’s Ant Group has raised its registered capital to 35 billion yuan ($5.44 billion) from 23.8 billion yuan, public business registration records showed, as the fintech giant continues its government-mandated restructuring.

Ant, an affiliate of e-commerce leader Alibaba Group Holding Ltd, in a Monday statement said the increase was to support growth and was “according to relevant regulations and business needs.”

Authorities in April ordered sweeping restructuring at Ant after halting the financial technology (fintech) firm’s record $37 billion initial public offering in November, underscoring government determination to rein in its internet giants.

The overhaul subjects Ant to tougher regulatory oversight and capital requirements.

Ant said the 47% jump in registered capital comes from “capitalisation of the company’s capital reserve.” It said it had not engaged in any fundraising activity and that no additional investors were involved.

($1 = 6.4374 Chinese yuan renminbi)