Ant Group, a fintech company affiliated with Alibaba, China’s largest e-commerce company, will convert into a financial holding company. With this, Ant Group will be supervised by the People’s Bank, the central bank of China.
The Wall Street Journal (WSJ) reported on the 27th (local time), citing the words of an official familiar with the matter.
In response, experts criticized the financial regulations of the Chinese authorities. It is analyzed that Alibaba founder Ma Yun, who is under pressure from the Chinese government, has actually surrendered.
At a forum in Shanghai last October, Ma Yun criticized China’s financial regulation by referring to the word’pawn shop’.
Since then, the Chinese government has raised the level of pressure by delaying the listing of Ant Group. Even Ma Yun went missing, and only appeared in 88 days.
When Ant Group becomes a financial holding company, it is subject to strict management and supervision by financial authorities. In addition, it faces various regulations, which may limit business expansion.
According to Business Insider, Ant Group recently submitted a restructuring proposal.
Ant Group, which operates Alibaba’s electronic payment system Alipay, originally planned to turn one of its subsidiaries into a financial holding company to control financial subsidiaries such as micro-loans, and to transform the parent company Ant Group into an IT company that is relatively free from regulations by the Chinese authorities. .
Based on this scenario, Ma Yun made plans to list on the Shanghai and Hong Kong stock exchanges.
However, Ma Yun’s scenario went into vain at the Bund Financial Summit held in Shanghai on October 23, criticizing China’s financial regulations.
Ma Yun, who even appeared to disappear afterwards, appeared at an official appearance on the 20th, three months later.
The Hong Kong South China Morning Post (SCMP) reported that Ma Yun gave a video speech to more than 100 teachers on the day, citing Tianmu News in Zhejiang Province at the time. Since 2015, Ma Yun has been inviting and awarding 100 teachers who have worked hard to educate rural areas in Sanya, Hainan Province every year through the Public Interest Foundation.This year’s event was held online because of Corona 19.
In a video speech, Ma Yun said, “I salute the 100 award-winning teachers and the 2.9 million rural teachers,” and “Let’s meet again in Sanya when Corona 19 is over.”
As soon as Ma’s appeared, People’s Bank announced a new antitrust law targeting Ant Group, a fintech subsidiary of Alibaba.
According to the draft sanctions, the Chinese Market Regulatory Authority could recommend dismantling’non-bank settlement companies’ that occupy more than half of the market, or companies with a market share of 67% or more.
Experts analyzed that the draft was aimed at Ant Group’s electronic payment platform Alipay.
Some experts said it was a full-fledged pressure from China to dismantle Ant Group.
Eventually, Ma Yun took the white flag of Ant Group’s conversion to a financial holding company under the endless pressure of the Chinese government.
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