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China’s Cinda scraps $944 million investment into Ant’s consumer finance unit -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – A man passes by the Ant Group logo during the World Artificial Intelligence Conference, Shanghai (China), July 8th 2021. REUTERS/Yilei Sun

(Reuters) – China Cinda Asset Management announced on Thursday that it will cancel an agreement for a 20 percent stake in Ant Group’s consumer finance arm. The deal was worth $6 billion ($943.83 Million).

Cinda’s stake in Chongqing Ant Consumer Finance Co Ltd would increase to 24%. The asset manager will now be its second-largest investor. Cinda currently holds a 4 percent stake in Ant via a subsidiary.

Cinda stated in an filing to the stock exchange that “after further prudent commercial considerations and negotiations with (Chongqing Ant Consumer Finance),” the company had decided not to subscribe to the share subscription.

Chongqing Ant Consumer Finance faces regulatory pressure to incorporate Ant’s micro-loan companies Jiebei and Huabei, which will make the company subject to capital and rules similar to banks.

Cinda is one of four largest state asset managers in the country and said that the withdrawal will not have any significant impact on the company.

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