PBOC of China Announces "Ant Group Financial Holding Company Restructuring"... Will Alipay Spin Off?

The People's Bank of China announced on the 12th through foreign media that Alibaba's financial subsidiary Ant Group is planned to be reorganized into a financial holding company.

[Asia Economy Reporter Song Seung-seop] On the 12th, the People's Bank of China, the central bank of China, mentioned that Alibaba's financial subsidiary Ant Group plans to be reorganized into a financial holding company.

The People's Bank of China stated in a press release, "Ant Group has developed a comprehensive and feasible restructuring plan based on the recommendations of financial authorities," and added, "It announced plans to improve corporate governance and rectify illegal financial activities in credit, insurance, and asset management." It explained that Ant Group will sever ties with the electronic payment application 'Alipay' and the microcredit service 'Jiebei.'

Bloomberg reported, "Chinese authorities urged Ant Group to convert into a financial holding company and be regulated like a bank," and "ordered the correction of unfair competition in the fintech business and the end of information monopolies."

Ant Group is known to be effectively controlled by Alibaba Group founder Jack Ma. It planned to simultaneously list in Hong Kong and Shanghai last November, but the plan was canceled after voicing criticism of the government. On the 10th, the State Administration for Market Regulation of China fined Alibaba 18.228 billion yuan (approximately 3.1 trillion Korean won) for forcing merchants on its platform to choose exclusively between platforms.