Jiangsu Yuyue Medical Equipment & Supply and Sunny Optical Technology Group have postponed their investments in Ant Group’s consumer finance unit after state-sponsored Cinda was required to halt its participation.
China-based payment services provider Ant Group’s Chongqing Ant Consumer Finance subsidiary has suspended plans to raise fresh funding, reportedly as part of the country’s crackdown on its technology companies.
One of the prospective investors, state-owned asset management firm China Cinda Asset Management, first revealed the decision in a filing on the Hong Kong Stock Exchange (HKSE).
The move followed an announcement last month stating Cinda was set to acquire an additional 20% stake in Ant Consumer Finance for $944m that would have made it the second largest shareholder, with a 24% stake.
State authorities including China’s State Council have reportedly pressured Cinda to abandon the plans because Ant Consumer Finance’s parent firm is still undergoing reorganisation, two sources told Reuters. Ant Group would have remained its largest shareholder, with 50% post-funding.
Medical equipment manufacturer Jiangsu Yuyue Medical Equipment & Supply and optical lens provider Sunny Optical Technology Group, which…
