China has now forced the Ant Group to restructure so that it acts more like a bank. However, Ant Group’s mega $37bn share market has launch was derailed by the regulators in the month of November over concerns regarding its financial model.
Well, the latest move is towards a wider crackdown by China to rein in the country’s fast-growing tech platforms. Notably, Ant’s company is affiliated with Alibaba who hits a record fine of $2.8bn on Friday over monopoly concerns.
The overhaul which is directed by the People’s Bank of China refers Ant to be tougher regulatory oversight and least capital requirements. One of China’s biggest payments providers, Ant Group with over 730 million monthly users on its digital payment services Alipay.
However, its assortment of consumer data was widely seen as the company’s prime advantage over its competitors. Although Ant has already agreed in setting up a personal credit reporting company that will strengthen the protection of personal info and efficiently protect the abuse of data.
Pressure on Jack Ma
Currently, the regulatory move is targeting the business empire of Jack Ma who is the co-founder of Ant Group and Alibaba.
Now, the regulator highlights the increasing interest in Ant Group in the month of October, since Ma criticized regulators by suggesting that they were stifling innovation.
After the speech, the Chinese regulators ruined the share market has launched Ant Group which is the sister company of Alibaba and you can also say it is China’s biggest electronic payments provider.
However, China’s State Administration for Market Regulation (SAMR) has now started looking for Mr. Ma’s e-commerce platform Alibaba which the China’s biggest. After the announcement of a $2.8bn fine, Alibaba’s share increased by more than 8% which the investors believe to be the sign for ending the investigations.
On the other hand, the Chinese regulators are dignified for taking a harder line on tech business. After compelling a laissez-faire attitude towards the country’s tech giants as the industry started developing.
In the last month, China’s State Administration for Market Regulation (SAMR) mentioned that he had been fined by around 12 companies over 10deals which violated the anti-monopoly rules. The companies involved are Tencent, Baidu, and Didi Chuxing that are the leading among the biggest tech companies.