Chinese fintech giant Ant Group is mulling the sale of its stake in its Hong Kong-based virtual bank, according to Bloomberg, citing people familiar with the matter.
The report added that the plans are still in preliminary stages as Ant Bank has been in talks with potential investors and the deal could be subject to changes.
This could be a much-needed lifeline as the virtual bank suffered about HK$232 million (US$30 million) in losses for 2021. As of December 2021, Ant Bank had HK$545,000 of loans outstanding and HK$741 million in deposits.
Ant Bank, one of the eight digital banks licensed by the Hong Kong Monetary Authority (HKMA), launched its services to the public in September 2020.
The group has declined to comment on the rumours.
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