Chinese Regulators Order Break up Of Jack Maa’s Alipay: Report

by Swarajya Staff - Sep 13, 2021 09:03 AM +05:30 IST
Chinese Regulators Order Break up Of Jack Maa’s Alipay: Report
President of China Xi Jinping and billionaire businessman Jack Ma

Chinese regulators are seeking to break up Alipay, the superapp owned by Jack Ma’s Ant Group (the fintech arm of e-commerce giant Alibaba) and create a separate app for its loan business, Financial Times reported.

The regulators are also reportedly planning to turn over user data to a new credit-scoring joint venture, in which Chinese state-owned business will have a significant stake.

Alipay — which has more than 1 billion users — will no longer be able to check customers’ credit worthiness internally, and will have to rely on outside credit scores.

Reuters had earlier reported that Ant and Zhejiang Tourism Investment Group Co Ltd will each own 35% in the credit-scoring venture while other state-backed partners including Hangzhou Finance and Investment Group and Zhejiang Electronic Port, will each hold slightly more than 5%.

Last November, regulators scuppered Ant's planned $37 billion stock listing, days before it was due to list in what would have been the world's largest IPO.

Little later, Chinese regulators also unveiled rules targeting Ant’s micro-lending business. Online lenders were mandated to fund at least 30% of any loan they supply jointly with banks forcing Ant to keep much more of the credit that it originates on its books.

In April this year, Ant was ordered by authorities to drastically structure its business model, including turning Ant itself into a financial holding firm supervised by the central bank, and fold its two lucrative micro-loan businesses Jiebei and Huabei, into the new consumer finance firm.

Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.

Latest Articles

    Artboard 4Created with Sketch.