Jack Ma’s Ant Group has reportedly increased its capital base to $5.4 bn (RMB 35bn) from RMB23.8bn as part of a restructuring process.

The development comes a year after regulators stalled the Chinese fintech giant’s initial public offering (IPO) and directed the firm to overhaul its business.

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Ant received approval at the end of last month to boost its capital base, Bloomberg News reported citing data from National Enterprise Credit Information Publicity System.

A spokesperson for Ant told the news agency that the capital boost was based on relevant regulations to better support the growth of the company.

The person also added that the company used the money from its capital reserve and did not conduct any fundraising activities.

In November last year, Ant was forced to halt its IPO after Chinese regulators stepped up ‘prudential oversight’ of fintech firms.

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The firm was later asked by Chinese banking regulators to turn itself into a financial holding company, which will have capital requirements similar to that of banks.

They will also be subject to stricter regulatory oversight.

Earlier this year, Bloomberg reported that Ant Group reached a restructuring agreement with the Chinese regulator to transform into a financial holding company.

The capital boost is seen as a vital step in the firm’s restructuring plan.

Additionally, the regulators proposed restricting Ant’s operation to consumer lending and wealth management.  The move is anticipated to rein in the firm’s dominance in the digital payment space.

Meanwhile, China is moving to further strengthen its crackdown on fintech firms.

Last week, the People’s Bank of China governor Yi Gang said that the country’s regulators will take further steps to curb monopolistic behaviour among internet platform companies.