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Thursday, June 17, 2021

Ant Group Announces Overhaul as China Tightens Its Grip

Beijing has been shifting swiftly to curb what it describes as unfair business practices by the nation’s highly effective web giants. And it has taken the company empire of Jack Ma, Alibaba’s billionaire co-founder and Ant’s controlling shareholder, as an early main goal.

On Saturday, China’s antitrust authority fined Alibaba $2.8 billion for abusing its dominance in digital retail — a report high quality for violations of the nation’s antimonopoly regulation.

Chinese officers pressured Ant to name off its blockbuster preliminary public providing final November, mere days earlier than its shares had been anticipated to debut. A month later, regulators ordered Ant to right what they referred to as a litany of failings in its business, which features a vary of monetary companies, from funds to credit score, which are supplied by means of its Alipay app.

Alipay’s consumer base of greater than 700 million individuals in China offers Ant large sway inside the nation’s monetary system.

China first mentioned final September that corporations proudly owning two or extra monetary companies must register as monetary holding corporations and be topic to elevated authorities oversight. In a news briefing on the time, an official at China’s central financial institution named Ant as one in every of a number of corporations that will possible must restructure underneath the brand new guidelines.

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