Beijing (AFP)

Chinese regulators have ordered giant Ant Group to drastically change its business model to refocus on its original online payment business, a sign of increased pressure from Beijing on the empire of multi-billionaire Jack Ma, founder of Alibaba and symbol of the country's technological success.

The Chinese central bank summoned the leaders of Ant Group, the world's number one online payment company, over the weekend and demanded that the company "rigorously rectify" its activities in the lending, wealth management and payment sectors. insurance, according to a statement released on Sunday.

According to the New China News Agency, Ant Group, a subsidiary of online shopping giant Alibaba, is now "strictly prohibited from unfair competition" and is called upon to reform its "illegal" financial activities.

Among the problems cited are alleged flaws in the group's governance, legal weaknesses and a lack of respect for the rules, with Ant Group being accused of "taking advantage of its dominant position in the market to exclude competitors".

Ant Group has helped revolutionize commerce and payment services in China with its Alipay platform, with consumers now using their smartphones heavily to pay for their purchases.

But the increasingly influential company has also raised concern among financial regulators by foraying into personal and consumer lending, wealth management and insurance.

The request of financial regulators comes less than two months after the suspension in extremis of the record IPO of Ant Group by the Chinese government, which had put an end to the ambitions of the charismatic Jack Ma in online finance .

The Chinese competition authorities also announced Thursday the opening of an investigation against Alibaba for "suspicion of monopoly practices", causing a sharp decline in Alibaba shares.

Sign of the nervousness of investors, Alibaba shares lost nearly 9% on Monday on the Hong Kong Stock Exchange.

The suspension in early November of the IPO of Ant Group had come a few days after a speech in Shanghai by Jack Ma, during which the multi-billionaire had criticized the action of financial regulators.

These remarks had earned him a summons by the authorities and he has not been seen in public since the stock market fiasco of Ant Group.

© 2020 AFP