bad Credit

Ant will be best among China’s BAD bunch

Ant will be best among China’s BAD bunch
Written by Publishing Team

Eric Jing, CEO of Ant Group, appears on a giant screen as he delivers a speech at the INCLUSION Fintech Conference in Shanghai, China, September 24, 2020. REUTERS / Cheng Leng

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HONG KONG, Dec 23 (Reuters) – A new Chinese tech trinity is set to rise. Following in the footsteps of Baidu (9888.HK), Alibaba (9988.HK) and Tencent (0700.HK) are ByteDance, Ant and Didi Global (DIDI.N). After a tough year for the entire sector, the path back through the new rules and a slowing economy appears to be tough, but Jack Ma’s financial services market will lead the uphill ride.

All three suffered a huge blow. Didi, the passenger carrier, lost half its market value in a few months after an initial public offering in New York in June, and in December it began the process of delisting its shares amid pressure from Beijing. The privately held stake in TikTok owner ByteDance, which was once tied to $400 billion, was trading for less. An Ant Warburg supporter Pincus recently lowered his rating by 15%. Read more

Going to the Hong Kong Stock Exchange to read more would bring Didi back to the good life in Beijing. Likewise, Ant Read more is completely restructuring its business from payments to lending and bringing in new backers from the state to satisfy officials.

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The revival of growth will be less direct. Didi faces a set of new rules aimed at protecting workers in China’s temporary job economy. These range from providing Social Security to a maximum of how much they can take away from driver fees. This will raise costs in the unprofitable company.

For ByteDance, a major slowdown in online advertising is looming. Efforts to diversify into video games and education have led to layoffs. Cyber ​​security authorities also set restrictions on how algorithms can be used to attract viewers. Douyin, the Chinese version of TikTok and ByteDance, has started allowing users to opt out of personalized recommendations.

Ants in front of him the clearest way. Its fast-growing credit activity was curbed, but the company retained its dominance over payments. In a sign that regulatory pressure may be easing, the consumer finance division in June was awarded a critical license in microlending, insurance, fixed income securities and more, putting a vital part of its operations back on track.

Moreover, in November the central bank approved a business application to record personal credit that the company owns at 35%. Advances like this could pave the way for a long-awaited initial public offering, and put Ant in a position to be the best among the BAD group.

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Editing by Jeffrey Goldfarb and Thomas Shum

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