Beijing plans to dismantle Ant Group’s Alipay and create a separate app for the fintech giant’s lending business, according to a Financial Times Report Monday. CNBC reports: Regulators previously ordered Ant to separate AliPay’s business from loan companies Huabei and Jiebei. They now want the credit firms to be split into an independent app as well, according to the FT. According to the plan, Ant will pass the user data underlying loan decisions to a new credit scoring joint venture, the FT reported, citing people familiar with the process. The joint venture will be partly owned by the state, according to the report. Reuters said in early September that state-owned companies would take a large stake in the credit rating joint venture, with Ant and Zhejiang Tourism Investment Group each owning 35% of the company.
Ant will not be the only online lender in China affected by the new rules, according to the FT. […] In April, regulators ordered Ant Group to reorganize its business, including restructuring itself into a financial holding company and creating more separation between its Alipay payments app and its credit products. In the same month, Chinese regulators also slapped Alibaba with a massive 18.23 billion yuan (about $ 2.8 billion) fine in its anti-monopoly investigation into the tech giant over alleged abuse of its market dominance.
China to dismantle Ant Group’s Alipay, force creation of new loan app
Source link China to dismantle Ant Group’s Alipay, force creation of new loan app