“Ant Group’s valuation could plummet to as low as $29 billion after becoming a financial holding company that’s regulated more like a bank,” reported Bloomberg, citing its investment research arm.
Due to new rules imposed by Chinese regulators, Ant Group’s revenue growth is expected to be in the lower teens compared to the 30% it posted in November 2020. This would drag down the company’s profit prospects, according to a senior financial analyst at Bloomberg Intelligence.
The analyst added that Ant’s valuation could plunge from US$320 billion to anywhere between US$29 billion to US$115 billion – a figure that’s closer to the valuation of banks and other financial institutions.
Recently, Chinese regulators asked Ant Group to overhaul its business into a financial holding company that could be regulated more like a bank.
The fintech giant is reportedly exploring options for founder Jack Ma to divest his stake in the company and give up control.
