Ma Win, founder of Alibaba. The photo shows Ma Yun attending a fintech conference in Hong Kong in 2016. Bloomberg
The dream of establishing a’financial empire’ by Ma Yun, the founder of Alibaba in China, is on the verge of breaking.
People’s Bank and others summoned Ant Group executives
Request for’complete reorganization of business division’
Loan, insurance, asset management, etc.
It may be reduced by basic online payment
Reuters and Bloomberg reported on the 27th (local time) that the People’s Bank of China (PBOC), the Bank Supervisory Commission, and the Securities Supervisory Commission called Ant Group executives to “go back to basics!”
According to Bloomberg, the People’s Bank has ordered to “get right” the Ant Group’s credit, insurance, and asset management, and to clean up the credit rating business to protect privacy.
The People’s Bank and the like did not go to the stage of publicly demanding the dissolution of the Ant Group. However, he stressed that “it is necessary to recognize the necessity of reorganizing the business entirely.”
Ant Group…
A private equity manager in Beijing, China, told reporters on the same day, “In light of the speaking habits of Chinese officials,’overall reorganization’ or’need to recognize the necessity~’ are virtually like orders.”
If the fund manager is correct, the Chinese government has ordered the disbanding of Ant Group. In fact, Ant Group announced in a statement that day, “The People’s Bank has emphasized the need for business renewal,” and “plans to form a special team to organize the business as soon as possible and ensure that the regulatory requirements are fully satisfied.”
The Chinese government’s shocking pressure
In the last two months, the Chinese government has been crushing Alibaba’s founder Ma Yun. Blocked Ant Group’s IPO and listing. He criticized that corporate governance was not transparent, and that it was taking advantage of gaps in the law.
The People’s Bank also accused the Ant Group of using its market power to exclude competitors, infringing the interests of hundreds of millions of consumers.
Alibaba US Stock Depository (ADR) price. Unit: Dollar
In addition, China’s State Market Supervision and Management Administration began investigating Alibaba’s antitrust activities on the 24th. On the 26th, an investigator was sent to Alibaba to investigate the situation, and Bloomberg cited local media in Zhejiang Province, China.
The Chinese government’s pressure on Ant Group came in earnest after Ma Yun criticized Chinese financial authorities for being overly conservative.
As a result, the financial empire that Ma Win tried to establish by advancing to loans, insurance, and asset management in the past 17 years using Ant, a simple online payment company, faced a crisis just before completion. The price of Alibaba stock (ADR) listed in the United States fell sharply last week.
Reporter Kang Nam-gyu [email protected]