(Yicai Global) Oct. 11 -- Ant Group, China’s leading financial technology services company, has raised its registered capital by 47 percent to CNY35 billion (USD5.44 billion) from CNY23.8 billion, according to corporate registration data.

The move was aimed at meeting regulatory requirements and its business needs, the Hangzhou-based company said in a statement today, according to a media outlet of Shanghai Securities News.

The funds came from the “capitalization of Ant’s capital reserve” rather than a fundraising activity, it said, adding that no new investors were involved.

Formed in 2000, Ant operates third-party payment app Alipay as well as internet-based financing services such as online small loan businesses Huabei and Jiebei. Chinese e-commerce giant Alibaba Group Holding is its largest shareholder with a 32.65 percent stake.

According to regulations issued by the People’s Bank of China and the banking regulator in September last year, f the balance of funds borrowed by online microfinance firms from banks and shareholders and from other non-standardized ways of financing must not exceed their net assets by more than one-fold. Furthermore, funds from issuing bonds, asset securitized products and other standard debt assets must not exceed four times their net assets.

About 98 percent of credit loans concluded on Ant’s platforms as of June 30 last year were granted by its financial institution partners or securitized, according to publicly available information. That means Ant either needed to increase its capital or scale back its loan business to meet regulatory requirements.

Editor: Peter Thomas