JD Digits Plans Finance Holding Company as China Tightens Rules
- Fintech company is also weighing to sell stakes in investments
- JD Digits laid off staff as part of shift to tech focus
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JD Digits Technology Holding Co. is planning to set up a financial holding company to comply with regulatory rules in China’s fintech sector, according to people familiar with the matter.
The holding unit, which will be regulated more like a bank, is expected to be separate from JD Digit’s other technology business, the people said requesting not to be named because the matter is private. As part of the restructuring, JD Digits, an affiliate of e-commerce giant JD.com Inc., has let go of some staff and is weighing divesting some of its stakes from past investments, the people said.