(Bloomberg) — Jack Ma’s Ant Group is planning to create a new consumer finance company to bolster its market share in the country’s fast growing online lending industry.
Ant is working with Nanyang Commercial Bank Ltd., China TransInfo Technology Corp. and Contemporary Amperex Technology Co. to build a consumer finance platform that will focus on doling out loans to individuals in China, people familiar said, requesting not to be named because the matter is private. The Chongqing incorporated company will have a registered capital of 8 billion yuan ($1.2 billion).
China TransInfo Technology jumped as much as 10%, the daily limit, while Contemporary Amperex Technology rose 4.3% in the afternoon trading session.
The new entity would boost Ant’s lending capacity since consumer finance companies are allowed to lend out 10 times their capital. That would far surpass the two to three times leverage of Ant’s existing micro-loan companies in Chongqing,