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China c.bank gives nod to set up credit-scoring JV backed by Ant, state firms

BEIJING, Nov 26 (Reuters) – China’s central financial institution mentioned on Friday it had accepted the appliance to set up a private credit-scoring three way partnership backed by Alibaba’s (9988.HK) fintech affiliate Ant Group and different firms.

The new enterprise, Qiantang Credit Rating Co Ltd, will develop into the third private credit score scoring agency in China if formally accepted by regulators.

It will probably be registered in Hangzhou, Zhejiang province with a capital of 1 billion yuan ($156.50 million), the central financial institution mentioned. The metropolis is the place Alibaba and Ant are primarily based.

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Ant and the state-backed Zhejiang Tourism Investment Group Co Ltd [RIC:RIC:ZJGVTT.UL] would every personal 35% of the enterprise, in accordance to an announcement by the People’s Bank of China (PBOC).

Other state-backed companions, together with Hangzhou Finance and Investment Group and Zhejiang Electronic Port, would maintain 6.5% every.

Transfar Group, a non-state-backed shareholder, would maintain 7%. The remaining 10% can be held by a personal fairness agency.

The set-up of the enterprise, through which Chinese state firms will take large stakes, is a part of Ant’s sweeping enterprise revamp ordered by regulators who put a sudden cease to its blockbuster preliminary public providing (IPO) final November.

The authorities has pushed for state-backed firms to exert extra affect over fast-growing however evenly regulated new-economy companies, Reuters has reported. learn extra

It additionally serves because the central financial institution’s year-long try to hyperlink mortgage information amongst completely different on-line lending platforms, and tighten controls in credit score info sharing to forestall over-borrowing and fraud.

Before Qiantang, the central financial institution had accepted Baihang Credit in 2018, China’s first licensed private credit score company with 9 events co-invested, together with credit standing items of Ant and Tencent Holdings (0700.HK).

It granted a second such approval to set up Pudao Credit Rating in December 2020, a enterprise between the funding arm of the Beijing authorities and subsidiaries of e-commerce large JD.com (9618.HK) and smartphone maker Xiaomi Corp (1810.HK).

($1 = 6.3901 Chinese yuan)

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Reporting by Cheng Leng, Zhang Yan and Ryan Woo; Editing by Edmund Blair

A man walks past an Ant Group logo at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 8, 2021. REUTERS/Yilei Sun

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