<p>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.</p>.<p>The China Banking and Insurance Regulatory Commission (CBIRC) in the southwestern city of Chongqing said in a notice dated Dec. 30 that Ant's consumer credit unit had gained approval to increase its capital to 18.5 billion yuan ($2.7 billion) from 8 billion yuan ($1.16 billion).</p>.<p>The approval came weeks after Beijing signaled at an economic work conference that it would support technology firms to boost economic growth and create more jobs.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/business-news/tiktok-owner-bytedance-cuts-hundreds-of-jobs-in-china-1177558.html" target="_blank">TikTok-owner ByteDance cuts hundreds of jobs in China</a></strong></p>.<p>Under the latest capital expansion plan, Ant would contribute 9.25 billion yuan ($1.34 billion) for a 50 per cent stake of its Chongqing consumer credit unit, while a separate company controlled by the government in the eastern city of Hangzhou, where Alibaba has its headquarters, would hold 10 per cent.</p>.<p>The approval comes more than a year after an earlier plan to raise 22 billion yuan ($3.2 billion) fell through when China Cinda Asset Management — a state-owned bad loans manager — pulled out of an agreement to acquire a 20 per cent stake in Ant's consumer finance arm.</p>.<p>Ant is restructuring after Chinese regulators pulled the plug on its mega-IPO just days before its market debut in Hong Kong and Shanghai.</p>.<p>They then tightened regulations on the financial technology industry, ordering companies like Ant to operate more like banks and follow capital requirements.</p>.<p>This meant Ant had to clean up violations in some of its businesses, such as credit, insurance and wealth management.</p>.<p>The company is awaiting approval of licenses to operate as a financial holding company and as a personal credit ratings firm.</p>.<p>Alibaba shares in Hong Kong jumped over 7 per cent on Wednesday. The company's New York-listed shares have fallen more than 23 per cent in the past year. </p>
<p>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.</p>.<p>The China Banking and Insurance Regulatory Commission (CBIRC) in the southwestern city of Chongqing said in a notice dated Dec. 30 that Ant's consumer credit unit had gained approval to increase its capital to 18.5 billion yuan ($2.7 billion) from 8 billion yuan ($1.16 billion).</p>.<p>The approval came weeks after Beijing signaled at an economic work conference that it would support technology firms to boost economic growth and create more jobs.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/business-news/tiktok-owner-bytedance-cuts-hundreds-of-jobs-in-china-1177558.html" target="_blank">TikTok-owner ByteDance cuts hundreds of jobs in China</a></strong></p>.<p>Under the latest capital expansion plan, Ant would contribute 9.25 billion yuan ($1.34 billion) for a 50 per cent stake of its Chongqing consumer credit unit, while a separate company controlled by the government in the eastern city of Hangzhou, where Alibaba has its headquarters, would hold 10 per cent.</p>.<p>The approval comes more than a year after an earlier plan to raise 22 billion yuan ($3.2 billion) fell through when China Cinda Asset Management — a state-owned bad loans manager — pulled out of an agreement to acquire a 20 per cent stake in Ant's consumer finance arm.</p>.<p>Ant is restructuring after Chinese regulators pulled the plug on its mega-IPO just days before its market debut in Hong Kong and Shanghai.</p>.<p>They then tightened regulations on the financial technology industry, ordering companies like Ant to operate more like banks and follow capital requirements.</p>.<p>This meant Ant had to clean up violations in some of its businesses, such as credit, insurance and wealth management.</p>.<p>The company is awaiting approval of licenses to operate as a financial holding company and as a personal credit ratings firm.</p>.<p>Alibaba shares in Hong Kong jumped over 7 per cent on Wednesday. The company's New York-listed shares have fallen more than 23 per cent in the past year. </p>