China’s Ant Group is lowering credit limits for some young users of its Huabei virtual credit card product. It has been a month since China suspended the fintech giant’s $37 billion public listing plan.
Ant said they intend to reduce the credit limit to promote more “rational” spending habits in a text message.
Furthermore, the move comes as Chinese regulators tighten their hold on fintech firms. They worry that young and lower-income borrowers could get into debt trouble.
Jack Ma, the founder of Alibaba (NYSE:BABA), controls the Ant. It has two credit subsidiaries, Huabei, and short-term consumer loan provider Jiebei.
Additionally, Ant said in its IPO prospectus that around 500 million people used them in 12 months until June 30.
In November, regulators published a consultation paper on tightening rules for micro-lending. It would require them to fund at least 30% of any loan they make jointly with banks.
Its IPO prospectus showed only 2% of the loans Ant had facilitated as of end-June were on its balance sheet.
Ant’s credit businesses had loan balances of 2.1 trillion yuan ($321.25 billion). Out of it was 1.7 trillion yuan consumer credit. That compares to 8.1 trillion yuan of short-term consumer loans issued by China’s banks.
Supplies of some fresh food in Britain, mainly fruit and vegetables, are at risk of running out. This is until a backlog of trucks at the port of Dover is cleared. Also, until links with France return to normal. The UK retail industry stated this on Wednesday.
Furthermore, a partial blockade by France has left thousands of trucks stranded. This was to try to contain a new highly infectious coronavirus variant. That is in Dover, Britain’s main gateway to Europe, in the run-up to Christmas.
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