Alibaba Pumps USD1.2 Billion Into Its Micro Lenders in Order to Meet New Regulation
Dou Shicong
DATE:  Dec 18 2017
/ SOURCE:  Yicai
Alibaba Pumps USD1.2 Billion Into Its Micro Lenders in Order to Meet New Regulation Alibaba Pumps USD1.2 Billion Into Its Micro Lenders in Order to Meet New Regulation

(Yicai Global) Dec. 18 -- The finance arm of Chinese e-commerce giant Alibaba Group Holding Ltd. [NYSE:BABA], Ant Financial Services Group, will pump CNY8.2 billion (USD1.2 billion) into its two micro lenders as it looks to enhance their ability to meet customer needs and adhere to new regulation.

The injection will take the firms' registered capital to a total CNY12 billion, China Securities reported today. Ant Financial will continue to increase capital into the two companies to aid business development, the report added.

China's regulators brought in a number of new policies earlier this month in a bid to cut back on usury, illegal financing and violent debt collection, as well as other issues plaguing the country's online microfinance sector. Ant Financial responded by saying it will work to meet the new rules.

The finance division's credit platform, Sesame Credit, began troubleshooting the online lenders that it works in August by monitoring the quality of the companies and their products and services. It terminated cooperation with merchants who failed to abide by the law.

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Keywords:   Alibaba,ANT FINANCIAL,Petty Loans,Zhima Credit