According to the plan, Ant will turn over user data underpinning loan decisions to a new credit scoring joint venture, the FT reported, citing people familiar with the process. The JV will be partly state-owned, the report said.
Hong Kong-listed shares of Alibaba, Ant Group’s e-commerce affiliate, fell more than 4% Monday afternoon following the FT report. The decline weighed on the broader Chinese tech sector as the Hang Seng Tech index declined almost 3%, with shares of other Chinese tech heavyweights like Tencent and Meituan also taking a beating.
Reuters said in early September that state-back firms are set to take a sizeable stake in the credit-scoring joint-venture, with Ant and Zhejiang Tourism Investment Group owning 35% each of the venture.
Ant will not be the only online lender in China affected by the new rules, according to the FT.