Ant Group Expected to File Financial Holding Co. Application This Month - Report

June 22, 2022 6:57 AM EDT

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Alibaba (NYSE: BABA) shares moved off morning lows Wednesday following reports from Bloomberg News that Jack Ma’s Ant Group Co. will be applying to become a financial holding company in China as soon as this month.

The People’s Bank of China is expected to accept Ant's application but the review process could take months, it was added. The review will include an examination of the company's financial strength and business plans as well as shareholder and senior management compliance.

Shares of Alibaba have been volatile in recent days as investors gauge China's willingness to approve Ant as a financial holding company. Shares surged on Friday on reports from Reuters that Ant’s application had been accepted, only to give back those gains as state-backed media denied the report, citing people close to the central bank.

Ant, for its part, said while it is studying the regulatory requirements, it has no timetable to submit the bank holding application.

"Ant has been steadily moving forward with its rectification work according to regulatory requirements, including preparing materials to apply to set up a financial holding company," a spokesperson for the Ant emailed to Bloomberg News. "We do not have a timetable to submit this application."

By Staff

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