China on Thursday approved the opening of a consumer finance company of Ant Group, a major financial services technology provider in the country.
As a licensed financial institution, the consumer finance company of Ant must strictly abide by relevant regulations, the China Banking and Insurance Regulatory Commission said.
The company, approved in September last year, had completed the preparation work within the statutory period and met the opening requirements, the commission said.
Under Ant Group's rectification plan, the new company will take over the consumer credit businesses, in line with regulations of two micro-credit firms. The two micro-credit firms will exit the market within the one-year transitional period after the consumer finance company opens.
The country's financial regulators asked Ant Group to rectify its operations in December last year after regulatory checks identified problems, including corporate governance flaws and foul play in regulatory arbitrage.