Cinda Asset Management, one of China’s bad debt managers, withdrew its plan to invest 6b yuan for a 20% stake in the consumer finance giant in January, without disclosing a reason. At the time, Chongqing Ant was planning to raise about 22b yuan to boost its capital to 30b yuan. The finance unit combines the company’s most lucrative online lending operations, Huabei and Jiebei.
Jack Ma’s Ant Group has been restructuring its operations, including beefing up capital, curbing consumer lending, and shuffling its management. In a filing in July, Alibaba Group Holding Ltd. reiterated that Ma “intends to reduce and thereafter limit his direct and indirect economic interest in Ant Group over time” to a percentage that doesn’t exceed 8.8%.