Alibaba Soars 9% on Report China Approves Ant’s Application for Financial Holding Company
. Alibaba Soars 9% on Report China Approves Ant’s Application for Financial Holding Company
By Senad Karaahmetovic
Ant Group’s application to set up a financial holding company has been approved by China’s central bank, Reuters report citing sources.
Industry experts saw this step as a crucial element in Ant emerging from a regulatory clampdown.
The approval also puts Ant, in which Alibaba (NYSE:BABA) holds a 33% stake, on track to make its long-awaited market debut. The Asian fintech giant was looking to raise $37 billion in 2020 before China moved to halt the IPO.
Reuters and Bloomberg reported last week that Ant Group received a green light to revive its IPO plans for Shanghai and Hong Kong.
Shares of Alibaba are up 9% in pre-open Friday on Reuters’ news.