Incorporated into financial business under the premise of authority management
Acceptance of restrictions other than payment services
Worry about’I’ll be photographed’ such as Jingdong.com
Selling a market cap of 200 billion dollars for two days
viewer
A Bloomberg News reported on the 29th that Alibaba, which is facing intense saturation by the Chinese government, is considering converting its subsidiary Ant Group into a financial holding company. It appears that the Chinese financial authorities recently issued a de facto order to disband the Ant Group. Meanwhile, there is growing concern that other large information technology (IT) companies such as Tencent and Jingdong.com may also become the next targets of the Chinese government.
On the day, Bloomberg News cited multiple anonymous sources and reported that Ant Group is considering plans to incorporate financial businesses that require permission from financial authorities after establishing a holding company. As a result, asset management, consumer loans, insurance, payment services, and Internet bank Mybank are expected to be incorporated into the holding company.
viewer
It is pointed out that if Ant Group’s financial businesses are incorporated into a holding company and are under the supervision of the financial authorities, the growth potential will rapidly slow down. In the first half of this year, Ant Group’s sales of 72.5 billion yuan (about 12.18 trillion won) accounted for 63% of the financial industry, while only 35.8% of the payment service revenue was the main business. Frances Chan, an analyst at Bloomberg Intelligence, predicts that the valuation of Ant Group’s non-payment businesses, such as asset management and consumer loans, will plummet by 75%.
The establishment of a financial holding company is one of the five requirements previously proposed by the Vice President of People’s Bank of Pangoongseong in an interview with the executives of Ant Group. At that time, Vice President Pan asked Ant Group to stick to the main business of payment services and to correct the sale of financial products such as loans and insurance in violation of regulations, and to organize the credit rating business to protect personal information. With the news delivered, Alibaba’s share price in Hong Kong’s stock market plunged 8.13% on the 24th and plunged 7.98% on the 28th. However, on the 29th, the news of the establishment of a holding company rebounded more than 6%.
There is growing anxiety that other Chinese IT companies are also exposed to regulatory risks from the authorities and can become’second Alibaba’. Platform companies with monopoly status include Jingdong.com, an e-commerce company, Tencent, which operates WeChat, a Chinese version of Kakao Talk, and Meitowan, a food delivery company. The Chinese leadership suggested strengthening antitrust regulations for large corporations as one of the key tasks for next year at the Central Economic Work (operation) conference which closed on the 16th.
According to Bloomberg News, investors concerned about the Chinese Communist Party’s oppression of these companies sold their shares on the Hong Kong stock market, evaporating their market cap of $200 billion in the two business days after the 24th.
Investment bank Baird’s Colin Savashchen said, “The results of the Chinese government’s ongoing investigations into Alibaba and other large online platforms are unpredictable.” It is highly likely.”
/ Reporter Noh Hee-young [email protected]
< 저작권자 ⓒ 서울경제, 무단 전재 및 재배포 금지 >