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Ant Group cleared to sell $3bn of asset-backed securities

Fintech giant makes 50% of profit from microlenders but analysts see change

Ant Group makes roughly half its profits from online microlenders Huabei and Jiebei.   © Reuters

Ant Group Co. won approval to raise 20 billion yuan ($3.04 billion) by selling securities backed by consumer loans after a Chinese regulatory crackdown on microlending sank the fintech giant's planned record initial public offering in Shanghai and Hong Kong.

The company sought approval earlier in November for asset-backed securities issued by its consumer microlending units, the operators of the Huabei and Jiebei platforms. After the Shanghai Stock Exchange cleared the listing applications, Ant has an additional 26 billion yuan of ABSs pending approval by the exchange.

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