Chinese regulators said that Ant Group lacked a sound governance mechanism, defied regulatory compliance requirements and engaged in regulatory arbitrageChinese regulators have ordered Ant Group, the world’s largest financial technology company, to rectify its businesses and comply with regulatory requirements amid increased scrutiny of anti-monopoly practices in the country’s internet sector. The statement said that Ant Group lacked a sound governance mechanism, defied regulatory compliance requirements and engaged in regulatory arbitrage. The orders from regulators could limit Ant Group’s expansion and throw its lucrative finance businesses into disarray. Jack Ma, the founder of both Alibaba and Ant Group, is one of China’s richest and most prominent entrepreneurs. Regulators ordered Ant Group to establish a financial holding company and hold sufficient capital.

Source: The Hindu December 27, 2020 11:33 UTC