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Home / Business / China’s central bank urges Ant Group to quickly formulate a “rectification” plan

China’s central bank urges Ant Group to quickly formulate a “rectification” plan



File picture: On October 29, 2020, a thermal imaging camera was seen in front of the Ant Group logo at the headquarters of Alibaba, a branch of Alibaba, Hangzhou, Zhejiang Province, China. REUTERS / Aly Song / File Photo

Beijing (Reuters)-The People’s Bank of China on Sunday urged Ant Group to formulate a specific plan as soon as possible to meet regulatory requirements and fully understand the importance of the “rectification” work it needs to implement.

Pan Gongsheng, deputy governor of the People’s Bank of China, said on the second day after the meeting with the representatives that the People’s Bank of China also urged Ant to correct illegal financial activities including credit, insurance and wealth management businesses, and regulate its credit rating business to protect individuals information. Member of the Fintech Group.

Last month, Chinese regulators abruptly suspended Ant’s planned US$37 billion initial public offering, which is expected to become the world’s largest initial public offering, just two days before its shares will begin trading in Shanghai and Hong Kong.

Ant did not immediately respond to a request for comment sent via email.

Authorities said on Thursday that they have launched an antitrust investigation against parent company Alibaba Group and will call Ant King Kong in the next few days, which is the latest blow to Jack Ma̵

7;s e-commerce and financial technology empire.

Pan said that the requirements of the People’s Bank of China also include requiring Ant to be more transparent in its third-party payment transactions and not engage in unfair competition, and requiring the establishment of its financial holding company to comply with the law to ensure sufficient capital.

China’s annual Central Economic Work Conference is a gathering of top leaders and policymakers to plan the economic direction in 2021. This month, China vowed to step up antitrust efforts and curb “disorderly capital expansion.”

Pan said that ants must strengthen risk management to maintain the continuity of services and the normal operation of the business.

He said that at the meeting, the regulator pointed out the problems of Ant Financial, including its poor corporate governance, contempt for regulatory requirements, illegal regulatory arbitrariness, and use of its market advantage to suppress competitors and harm consumers’ legality. rights and interests.

Reporting by Qiu Zhiqiang, Cheng Leng, Sun Yilei and Wu Yanzu; Editing by William Mallard


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