Regulators urge Ant Group to revise its businesses
The regulators of the Chine have recently ordered the biggest financial technology firm of the world, Ant Group to revise its ongoing businesses and meanwhile, follow regulatory needs amid gained research of anti-monopoly practices in the nation’s internet field.
The central bank of the country, the People’s Bank of China asked the executives of the Ant Group on Saturday and also instructed them to design an exploration plan and a generation of business timetable such as insurance, credit, and wealth management services, said by the regulators in a statement.
It further stated that Ant Group had in need of powerful governance method, ignored regulatory compliance needs as well as involved in administrative investing. It also stated that the firm utilized its industry position to eliminate rivals and hamper the rights as well as interests of customers. The meeting arrived after the regulators of China previous month stopped $37 billion stock debut of Ant Group in Hong Kong and Shanghai over regulatory modifications.
It comes just days after China declared an anti-monopoly survey if e-commerce giant Alibaba Group, which captures a 33 percent stake in the finance company. The instructions from regulators could restrict expansion of Ant Group and throw its essential finance businesses into disorder. The company began as a money services for the e-commerce platform of Alibaba, Taobao which has extended to provide insurance as well as investment products to its numerous users in the China.
The founder of Alibaba and Ant Group, Jack Ma who is the richest and well-known entrepreneurs of China. Furthermore, the regulators instructed Ant Group to develop a fiscal holding firm and maintain enough capital. They also stated that the company should return to its payments launches, promote transparency across transactions and exclude unfair competition, while enhancing enterprise governance and assuring that it complies with administrative needs for its businesses.