|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||8.71 - 8.80|
|52-week range||7.61 - 10.14|
|Beta (5Y monthly)||0.62|
|PE ratio (TTM)||3.89|
|Forward dividend & yield||0.68 (7.71%)|
|Ex-dividend date||06 Jul 2020|
|1y target est||N/A|
(Bloomberg) -- Ant-backed MYbank will join China’s digital yuan trial as the central bank charges ahead with rolling out an electronic currency system that could uproot the country’s payments landscape.MYbank’s service will soon be introduced to the People’s Bank of China’s digital yuan app, people familiar said, requesting not to be identified because the matter is private. Tencent-backed WeBank will also participate, one of the people said. The e-wallets from the two firms will have exactly the same functions as those from the six state-owned lenders in the trial, said the person.Adding the two banks to the pilot will help China’s central bank expand its influence and user coverage in its push to establish the first digital national currency from a major central bank. When the People’s Bank of China first announced its plans, it was viewed by some as a government move to reclaim the 293 trillion yuan ($45 trillion) payments industry from to Ant Group Co.’s Alipay and Tencent Holdings Ltd.’s WeChat Pay.As one of the parties participating in the research and development of PRC’s e-CNY, MYbank will “steadily advance the trial pursuant to the overall arrangement of the People’s Bank of China,” the company said in an emailed response without elaborating. WeBank declined to comment in an emailed statement. The PBOC didn’t immediately respond to a fax seeking comment.In China, smart-phone-based electronic payments are ubiquitous, used for everything from bus-rides and convenience stores to vegetables at the local market -- and 94% of those mobile transactions are controlled by the two firms. Yet the tech giants are facing tougher times ahead under President Xi Jinping’s government, which has already stepped up oversight of the fintech industry and unveiled tougher antitrust regulations for the internet arena. The digital yuan is being rolled out at a time when China is trying to curb monopolies in the payment space, potentially dealing a blow to Alipay and WeChat Pay’s growth.Jack Ma’s Ant is the biggest shareholder in MYbank, owning a 30% stake. Tencent is the biggest stakeholder in WeBank, holding 30%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- China provided medium-term funds to lenders on Thursday, giving banks some relief after its cash drainage last month triggered the country’s worst liquidity squeeze since 2015.The People’s Bank of China offered 200 billion yuan ($31 billion) of one-year liquidity with its medium-term lending facility, according to a statement. That helped offset the loans that mature this month. It kept the interest rate on the funds unchanged at 2.95%.While officials remain wary of excess liquidity, Thursday’s move adds to signs that the central bank is in no rush to repeal measures put in place to support the economy. The PBOC last week downplayed the significance of its recent cash withdrawals, saying in a quarterly report that authorities won’t make “sharp turns” in monetary policy.“The move was as expected, which reflects that the PBOC’s policy stance is still neutral,” said Ken Cheung, a strategist at Mizuho Bank Ltd. “The central bank still wants to keep a certain amount of liquidity in the market.”The overall supply and demand for liquidity is balanced even though prices for overnight repos were higher than before the Lunar New Year holiday, according to one trader, who asked not to be identified because they were not authorized to comment on the market.The overnight repurchase rate -- a gauge of short-term interbank borrowing costs -- was up 51 basis points at 2.34% as of 3:03 p.m. in Shanghai. The seven-day rate rose 2 basis points to 2.23%.How China’s Liquidity Squeeze Got Markets All Rattled: QuickTakeThe central bank tightened funding conditions in the banking system last month amid worries over frenzied investments that could inflate asset bubbles in the financial and property markets. The overnight repo rose to the highest since 2015 at the end of January, resulting in the largest monthly increase in the cost since 2010. That ended a two-month period of cheap and plentiful funds that had helped support sentiment after a spate of high-profile credit defaults late last year.Policy makers have since released some short-term funds through reverse repurchase agreements to restore market stability. But they refrained from injecting cash for longer-term use even as liquidity demand spiked before the Lunar New Year holiday, a reversal of what the central bank did in 2020 and 2019.The PBOC also offered 20 billion yuan of seven-day reverse repurchase agreements on Thursday. Some 280 billion yuan of short-term instruments are due.(Updates prices in sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Ant Group Co. and Chinese regulators have agreed on a restructuring plan that will turn Jack Ma’s fintech giant into a financial holding company, making it subject to capital requirements similar to those for banks.The plan calls for putting all of Ant’s businesses into the holding company, including its technology offerings in areas such as blockchain and food delivery, people familiar with the matter said. One of Ant’s early proposals to regulators had envisioned putting only financial operations into the new structure.An official announcement on the overhaul could come before the start of China’s Lunar New Year holiday next week, the people said, asking not to be identified discussing private information. Alibaba Group Holding Ltd., which owns about a third of Ant, erased losses in Hong Kong trading on Wednesday after Bloomberg reported the agreement. Alibaba rose 3.5% in New York.Some market participants had been speculating Ant might be forced to spin off portions of its business, which now looks unlikely, said Shujin Chen, Hong Kong-based head of China financial research at Jefferies Financial Group Inc.Ant’s restructuring plan marks the first big step in what’s expected to be a lengthy overhaul process, as regulators draw up detailed capital requirements and other guidelines for companies that span multiple financial business lines.China only introduced its framework for financial holding companies in September and many of the specifics are still being ironed out. While the rules will eventually provide more regulatory clarity for Ant, they’ll almost certainly force the company to slow the torrid pace of expansion that has made it China’s dominant fintech player and one of the world’s most valuable startups.Ant is still exploring possibilities to revive its initial public offering, which was abruptly halted by regulators in November, one person familiar with the matter said. But given the financial holding company framework is so new, it’s unclear how long it might take for authorities to sign off on a listing.Bloomberg Intelligence analyst Francis Chan estimates Ant’s valuation could drop to $108 billion. Ant fetched a $280 billion pre-money valuation before its IPO was halted.As part of the overhaul plans, Ant and at least a dozen banks are paring back their years-long cooperation on consumer lending platforms that fuel the spending of at least 500 million people in China.Ant declined to comment. The People’s Bank of China, which oversees financial holding companies, didn’t immediately respond to a faxed request for comment.Ant’s restructuring is part of a broader government campaign to increase supervision of the financial and technology sectors. Regulators have in recent months targeted everything from health-care crowdfunding to consumer lending. In January, they proposed measures to curb market concentration in online payments, where Ant and Tencent Holdings Ltd. are the biggest players.The clampdown has fueled intense speculation over the status of Ma, who co-founded both Ant and Alibaba. The e-commerce giant has also faced increased government scrutiny in recent months, becoming the target of an antitrust investigation in December.Ma’s appearance in a live-streamed video conference in January -- after several months out of public view -- has helped quell talk of worst-case scenarios for his business empire. Still, plenty of uncertainty remains: Even after Wednesday’s gain, Alibaba’s Hong Kong shares are trading about 15% below their record high in October.(Updates with how Ant and banks are paring back loan collaboration)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.