Ant’s consumer financing division will see its capital increase to $4.7 billion

According to an exchange filing released on Friday, Ant Group’s consumer finance unit will increase its capital to 30 billion yuan ($4.71 billion) and introduce four new strategic investors.

Chongqing Ant Consumer Finance Co Ltd is under pressure from regulators to integrate Ant’s two lucrative microloan operations, Jiebei and Huabei, into it, putting it under the same laws and capital requirements as banks.One of the company’s new investors, China Cinda Asset Management, one of the country’s four largest state asset managers, said it will invest 6 billion yuan as part of the exercise.

With a 24 percent holding in the consumer financing unit, China Cinda will become the second largest shareholder, with a 20 percent stake owned directly and a 4 percent stake held through Nanyang Commercial Bank Ltd, a Cinda subsidiary.

According to Cinda’s registration with the Hong Kong Stock Exchange, Ant will keep a 50% ownership in the unit. Sunny Optics, Boguan Technology, a unit of NetEase (NASDAQ: NTES) Inc, and Yufu Capital, a local investment arm of the Chongqing government, were all introduced as strategic investors in Ant’s consumer lending operation, according to the filing. Ant announced this month that it was attempting to separate a portion of its Jiebei short-term consumer lending business as part of a regulator-led restructuring.