Alibaba Fintech Affiliate Ant Highlighted Shining Prospects Of Domestic Private Sector Backed By Government Support

  • Alibaba Group Holding Ltd's BABA fintech affiliate Ant Group post its business overhaul, shared a positive outlook for China's private sector, highlighting the fintech giant's role in boosting the country's economy.
  • Ant Chair Eric Jing said the fintech firm could play a more significant role in China's economy amid strong support from Beijing for the private sector, the SCMP reports.
  • Ant expressed conviction in creating more excellent value in leading development, creating jobs, and international competition.
  • Jing said Ant would focus on improving the digitalization of small and micro enterprises.
  • Ant moved into the final stages of a lengthy restructuring process that has further distanced itself from parent Alibaba after tightening regulations in late 2020 after China shelved its initial public offering at the last minute.
  • Beijing signaled a more positive stance on the company, and Ant won regulatory approval to expand the capital base at its consumer credit unit, Chongqing Ant Consumer Finance.
  • Alibaba Chair and CEO Daniel Zhang echoed similar sentiments after bearing the brunt of the regulatory crackdown, including a hefty fine for monopolistic practices.
  • In January, executives from 21 private-sector Chinese companies, including Alibaba, lauded their confidence in the nation's economy in an unparalleled program aired by China's state broadcaster.
  • The program underscored Chinese President Xi Jinping's message during last year's party congress that the ruling Communist Party will "unwaveringly" support the private sector, a promise stressed further at a critical economic work conference at the end of 2022.
  • Price Action: BABA shares traded lower by 0.80% at $108.86 premarket on the last check Friday.
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