Chinese regulators approve capital expansion for Ant Group

By ZEN SOO
Associated Press

HONG KONG (AP) — Chinese regulators have said e-commerce giant Alibaba’s finance affiliate Ant Group can raise $1.5 billion for its consumer finance unit in an important step forward after the government called off a planned IPO two years ago and ordered the firm to restructure. The China Banking and Insurance Regulatory Commission (CBIRC) in the southwestern city of Chongqing said it approved Ant’s consumer credit unit’s request to increase its capital. The approval came weeks after Beijing signaled that it would support technology firms to boost economic growth and create more jobs. Alibaba shares traded in Hong Kong jumped more than 7% on Wednesday. The company’s New York-listed shares have fallen more than 23% in the past year.