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Beijing (AP) - In a new blow against the corporate empire of the Chinese billionaire Jack Ma, the supervisory authorities have ordered a restructuring of his financial company Ant Group.
The star of the fintech industry has to transform itself into a financial holding that, like a bank, is subject to regulatory authorities.
This means that it must meet stricter requirements and have more liquidity available.
The plan was announced by the central bank's deputy chief Pan Gongsheng on Monday after a meeting of the supervisory bodies for China's banking and securities sector with the leadership of the Ant Group in Beijing.
Only at the weekend, China's competition watchdogs imposed a record fine of 18 billion yuan (€ 2.3 billion) on Alibaba.
The world's largest online trading platform has used its dominant position to force dealers to offer their goods exclusively through Alibaba, the market regulator justified the move on Saturday.
It is the Chinese antitrust authorities' highest penalty to date against an Internet company.
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The problems for Alibaba began in the fall when the charismatic founder Ma criticized the tax authorities for holding back innovation shortly before the planned double listing of the Ant Group.
After that, the authorities simply canceled the debut on the floor in Shanghai and Hong Kong for a short time.
It should have been the biggest IPO of all time.
The unconventional methods of the Ant Goup, which also includes the leading mobile payment service Alipay, had long been a thorn in the side of the authorities.
The company offers not only mobile payment with the cell phone, but also fast consumer credit, asset management and insurance.
As deputy central bank boss Pan Gongsheng reported according to the state television, the Ant Group must in future eliminate “unfair competition” in its services.
Furthermore, the liquidity risks of his financial fund Yu'e Bao must be "actively reduced".
Loans would have to be offered in accordance with government regulations for lending and data protection.
The company has to accept the stricter supervision of the authorities and stop «illegal» activities in credit, insurance and asset management.
The vice central bank chief demanded that high financial burdens and risks in his financial services should be better controlled.
The actions of the regulators are part of a greater scrutiny of the growing financial platforms on the Internet, where hidden risks are feared.
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According to experts, the new requirements will significantly reduce the company's value.
It was valued at $ 280 billion prior to the planned IPO.
Ant Group is the biggest player in the Chinese fintech sector.
Its mobile payment service Alipay has a billion users and more than half of the market share, followed by Tencent with Wechat.
In China, mobile payment with the cell phone is already the rule, so that little cash is paid.
Tens of trillion yuan, the equivalent of several trillion euros, flow through both payment services every year.
© dpa-infocom, dpa: 210412-99-175036 / 2
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