Chinese fintech giant Ant Group has just dramatically increased its registered capital levels to cater to its “future operational needs.”
Ant Group’s registered capital has been increased to 35 billion yuan from 23.779 billion yuan previously, for a rise of 47%.
According to official registration data the increase was approved by Chinese regulators on 30 September 2021.
Ant Group said that the increase in its registered capital is the result of the conversion of capital reserves into registered capital, and not the result of financing on the market via additional investors.
According to Ant the increase in registered capital was made on the basis of its operational development needs as well as relevant regulatory provisions, and will “create in advance greater space for the subsequent development of the company.”
The move comes after an extremely trying year for the fintech giant, with its mammoth IPO on the Shanghai and Hong Kong bourses originally scheduled for early November 2020 shelved at the last minute by Chinese regulators over risk concerns.
Ant Group executives were also summoned for disciplinary “regulatory discussions” by Chinese authorities, who demanded that the fintech platform return to its original focus on payments, as well as convert into a holding company in order to expedite regulatory scrutiny.