Ant Group, the world’s largest financial technology company, has ordered Chinese Internet regulators to adjust its businesses and comply with regulatory requirements amid growing scrutiny of anti-monopoly practices in the country’s Internet sector.
Called the People’s Bank of China, the country’s central bank Ant Executives were instructed on Saturday and to formulate a corrective planning and implementation timetable of its business, including credit, insurance and wealth management services, regulators said in a statement on Sunday.
The statement said Ant Group did not have a sound governance mechanism, defying regulatory compliance requirements and engaging in regulatory arbitrage. The company said it used its market position to exclude rivals and undermine consumer rights and interests.
The meeting comes just months after Chinese regulators halted an ant $ 37 billion (approximately Rs 2,72,000 crore) stock debut in Shanghai and Hong Kong over regulatory changes, just days after China announced its anti-monopoly probe into the e-commerce giant. Alibaba Ant Group, which has a 33% stake in Ant Group.
Orders from regulators could limit Ant Group’s expansion and confuse its lucrative finance businesses.
Ant Group, launched as a payment service for Alibaba’s e-commerce platform Tombau, Has since expanded to provide insurance and investment products to hundreds of millions of customers in the mainland of China. Jack Ma, founder of both Alibaba and Ant Group, is one of China’s richest and leading entrepreneurs.
The regulators instructed Ant Group to set up a financial holding company and have sufficient capital. They said Ant Group should return to its source of payments, increase transparency around transactions and ban unfair competition while improving corporate governance and ensuring compliance with regulatory requirements for its businesses.
Ant Group said in a statement on Sunday that it would comply with regulatory requirements, improve risk management and control, and set up a working group to make necessary corrections.
“We appreciate the guidance and assistance of financial regulators,” Correction is an opportunity for the ant group to strengthen the foundation for our business to grow in full compliance and to focus on new innovations for the betterment of society and to serve small businesses. . ”
Ant Group and Alibaba’s observation comes as China is closely examining the impact of the country’s Internet sector.
China released draft regulations last month to curb anti-competitive practices in the industry, concluding exclusive agreements with traders and using subsidies to exclude competitors.
Alibaba and a company retaliated Tensent He was fined this month for failing to apply for formal approval before proceeding with some acquisitions.
Last Tuesday, regulators met with Alibaba and five other large Chinese Internet companies and warned them not to abuse their dominance to oust competitors through special deals, extortion pricing and other tactics, according to a statement from the State Administration of Markets Regulation.
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