BEIJING: Chinese fintech giant Ant Group has been ordered by regulators to drastically change its business model and return to its roots as a payment services provider, as the state squeeze continues on the once unbridled empire of tech tycoon Jack Ma. China’s central bank summoned Ant executives over the weekend and demanded the company “strictly rectify” its lending, insurance and wealth management services, according to a statement released on Sunday. Ant Group made its name via its main product Alipay, the online payments platform and super-app that is now deeply embedded in China’s economy. Xinhua news agency reported Ant Group is now “strictly prohibited from unfair competition” and is urged to redress its “illegal” financial activities. As global demand for the dual Hong Kong-Shanghai listing pushed the IPO toward record valuations — potentially handing Ma and Ant Group even more funding, legitimacy and clout — Chinese regulators acted.

Source: Manila Times December 28, 2020 08:48 UTC