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Vanguard China Tie-up With Ant Has Bigger-Than-Forecast Loss

  • Joint venture said to report $3.8 million loss as costs jump
  • Investors face ‘confidence crisis’ after China stock slump
The Ant Group headquarters in Hangzhou, China,

The Ant Group headquarters in Hangzhou, China,

Photographer: Qilai Shen/Bloomberg
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When Vanguard Group Inc. made a surprise retreat from China last year, the U.S. investing giant pinned its remaining hopes on a robo-advisory joint venture with billionaire Jack Ma’s Ant Group Co. The road to a profitable China business is proving to be bumpier than expected. 

The partnership booked a 25 million yuan ($3.8 million) loss last year, more than five times higher than an internal forecast made after the venture was set up in 2019, according to people familiar with the matter. The short-term prospects aren’t much better following a loss in January, the people said, asking not to be identified discussing private matters.