Analysis: Stepped up Chinese scrutiny increases investment risk of 'Beast' Ant

BEIJING/HONG KONG: As Ant Group was working in August towards its giant IPO, at least two smaller Chinese banks with existing ties to the fintech firm decided to stop sourcing new consumer loans from it, people with knowledge of the matter said. Their moves came after regulators scrutinised banks that used Ant’s technology platform excessively for underwriting consumer loans at a time when concerns about defaults and lenders’ asset quality grew in a pandemic-hit economy, said the people. The sharper regulatory focus over Ant’s cash cow and rapidly growing consumer lending business to curb financial sector risk has emerged as…