Ant Group to set up holding firm in response to probe

Ant Group, which offered mobile payment and consumer credit services, will apply to set up a financial holding company to ensure its financial-related businesses are fully regulated following an antitrust probe.

The company handling the transactions of Alibaba Group's e-commerce platforms shall return its payment business to the origin of "serving consumers and small and micro businesses", according to a notice published on the Hong Kong stock exchange by Alibaba, which owns a 33 percent stake in Ant.

Ant would also set up a personal credit reporting company and apply for a personal credit reporting license.

The company said it would carry out personal credit reporting in compliance with relevant laws and regulations, strengthen personal information protection and effectively prevent the abuse of data.

Two flagship credit lending services, Jiebei and Huabei, will be folded into its consumer finance company, which is subject to stricter regulation.

In a statement published on Monday, four government agencies including the People's Bank of China -- the central bank -- ordered Ant to cut off "improper connections" between its payment platform and its financial products, among a bevy of government measures to bar the "disorderly expansion of capital" and rein in financial risks.