Alipay has not been nationalized, but the state-owned shares in Ant Financial, which Alipay belongs to, have become the second largest shareholder.

Since the giant Ant Financial was suspended in the IPO last year, news about strong supervision and investigation of ants flooded the whole market, and even rumors of dismantling ants came out.

20211February 25th, a company named China Xinda (0 1359. HK) announced that Chongqing Ant Consumer Finance Co., Ltd. will increase its capital and share by issuing additional registered capital to all subscribers. After the capital increase, the registered capital of Ant Consumer Finance increased from 8 billion yuan to 30 billion yuan, becoming the absolute leader of the industry.

After the completion of this capital increase, the major shareholder of Ant Consumer Finance is still Ant Group, and its shareholding ratio remains unchanged at 50%. The second largest shareholder was changed to China Cinda, with a subscribed capital of 6 billion yuan and a shareholding ratio of 20%. If the 4% equity held by its subsidiary Nanyang Commercial Bank is added, the actual shareholding of China Cinda is 24%, the third largest shareholder is Yu Shun Optical, with a shareholding ratio of 6% and Yuyue Medical is 4.99%.

China Cinda is a central enterprise financial service giant approved by the State Council, and one of the first four asset management institutions. Its core business is dealing with the management of non-performing assets, mainly providing financial solutions and asset management services to customers. As of last year, the asset scale reached10.5 trillion, which is not inferior even compared with Ant Group. Among the shareholders, the Ministry of Finance holds 58%, the Social Security Fund holds 14%, and China COSCO holds 5%.

For this capital increase of ant consumer finance, the official reason given by Cinda is that the scale of consumer finance industry continues to expand under the background of increasing consumer demand and perfect supervision system. The application of financial technology makes technology drive financial innovation, while ant consumer money has investment value by virtue of financial technology empowerment, relying on business scenarios and customer traffic.

However, the actual reason is clear to everyone. The operation mode before Ant Financial Services was seriously out of touch with the supervision system, and the problems such as imperfect credit system, loan risk mismatch, inadequate supervision, low capital and high leverage ratio were very prominent. If left unchecked, it is likely to lead to subprime mortgage risk, which is also the main reason for the supervision and intervention investigation on the eve of Ant Financial's listing.