Ant Group reportedly mulls selling stake in its HK virtual bank unit

Ant Group, Ant Bank (Hong Kong)'s parent company is reportedly mulling to sell a stake in its virtual banking unit in Hong Kong after it overhauls operations.

According to Bloomberg, Ant Bank (Hong Kong) has been in talks with potential investors to bolster operations, said people familiar with the matter. Meanwhile, the plan is in its early stages and subject to change.

MARKETING-INTERACTIVE has reached out to Ant Group for a statement.

Ant Bank is one of eight virtual lenders approved by the Hong Kong Monetary Authority (HKMA) in recent years, competing with banks such as Mox Bank, Livi Bank, WeLab Bank and ZA Bank, according to HKMA. 

According to its annual report, Ant Bank Hong Kong recorded approximately HK$232 million in losses before tax for 2021, an increase from HK$172 million the year before. It had HK$545 million of loans outstanding as of December that year.

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Furthermore, Ant Group has been restructuring operations across the board to appease regulatory demands after China halted its initial public offering (IPO) in 2020. Back in December last year, it won regulatory approval to expand the capital base at its consumer credit unit.

Jack Ma-backed Ant Group incorporated the fully-owned unit in August 2018 and received a banking license approval in May in 2019. Back in January, Ma said he would cease control of the company upon the readjustment of its upper-tier shareholding structure.It would change from Jack Ma exercising voting rights jointly with persons acting in concert, to each of ten individuals (including the founder, representative of our management and employees) exercising their voting rights independently.

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