Plans are reportedly underway for Ant to establish a personal credit scoring joint venture with state-backed companies set to take major stakes in the new firm.
The ownership plans include Ant and Zhejiang Tourism Investment Group Co Ltd each owning 35 percent in the credit scoring joint venture, according to a Reuters report citing unnamed sources.
Other state-backed parents include Hangzhou Finance and Investment Group and Zhejiang Electronic Port, with each expected to hold slightly more than 5 percent
Transfar Group, parent of logistics and financial services firm Transfar Zhilian Co Ltd, will be the only non-state investor with a total stake of 7 percent.
The proposed credit scoring joint venture will collect, manage and analyze consumer data to score people’s credit.
Shareholders will invest about 500 million yuan ($77.4 million) in the entity as registered capital.
The plan is for the firm to be launched as soon as October.
According to the report, the establishment of the new firm and its ownership structure are part of restructuring orders by regulators who halted Ant’s blockbuster IPO in November last year.
The credit scoring joint venture will consolidate Ant’s main business data operations and make regulatory oversight easier.
The joint venture’s establishment will mark the third licensed personal credit-scoring firm alongside Baihang Credit Scoring and Pudao Credit Rating Co Ltd.