Jack Ma-backed Ant weighs introducing investor in Hong Kong bank unit

ANT Group is considering selling a stake in its virtual banking unit in Hong Kong, according to people familiar with the matter, the latest move as the fintech giant overhauls operations.

Ant Bank (Hong Kong) has been talking to potential investors to bolster operations, the people said, requesting not to be identified because the matter is private. The plan is preliminary and subject to change, said the people. Ant declined to comment in an emailed statement.

Ant Bank is one of eight virtual lenders approved by the Hong Kong Monetary Authority in recent years, competing with rivals including Za Bank and WeLab Bank. In China, its parent Ant Group has been restructuring operations across the board to appease regulatory demands after its initial public offering was halted in 2020.

Ant Bank recorded about HK$232 million (S$39.16 million) in losses for 2021, according to its annual report. It had HK$545,000 of loans outstanding as of December that year, while deposits totalled HK$741 million.

Jack Ma-backed Ant Group incorporated the fully-owned unit in August 2018 and received a banking licence approval in May of the following year. Ma said in January that he would cede control of Ant Group, holding about 6.2 per cent voting rights after the change. BLOOMBERG