Bloomberg first reported that Ant Group had reached an agreement with Chinese regulators about the proposed restructuring.

Reports have pinpointed a speech on 24 October last year by Ma as the start of his troubles. In that speech, he attacked China’s regulatory system. The IPO, due in early November and slated to be worth $37 billion, was suspended before its dual listing in Hong Kong and Shanghai.

Chinese regulators are reporteldy fretting about Ant Group’s impact on the country’s financial stability. Regulators have reportedly considered subjecting Ant to tighter capital and leverage regulations. Under that scenario, state banks or other types of state investors would buy into Ant Group to help cover any potential capital shortfall as a result of the tightened rules.

The saga underlines how Chinese regulators are concerned that their ability to control financial flows – and prevent future stresses – is potentially challenged by tech-driven financial services organisations such as Ant Group.