China's Ant Group Applies for Financial Holding Company License

The People's Bank of China and 3 Other Departments Hold 'Pre-Meeting' with Ant Group
Ant Group Submits 5 Improvement Plans, Commits to Fulfilling Corporate Social Responsibilities

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Ant Group, the financial subsidiary of Alibaba Group, will be reorganized into a financial holding company. The China Market Regulatory Authority previously imposed a fine of 18.228 billion yuan (approximately 3.1124 trillion KRW) on Alibaba on the 10th.

China's central bank, the People's Bank of China, announced on the 12th that Ant Group will be reorganized into a financial holding company, according to Chinese economic media Caixin. Caixin explained that the People's Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange held a reserved meeting (Wetan) with Ant Group's management.

Pan Gongsheng, Vice Governor of the People's Bank of China, stated, "We clearly conveyed the need to prevent monopolistic practices and disorderly expansion," adding, "This will promote the healthy and sustainable development of China's platform economy."

Caixin reported that Ant Group made five major revisions. First, it will correct unfair competitive practices, provide consumers with the choice of payment methods, and sever inappropriate relationships with Alipay, Jiebei, and Huabei.

It also included a policy to strictly enforce credit investigation management regulations and to collect and use personal information through lawful means. Additionally, Caixin explained that Ant Group conveyed to Chinese financial authorities its intention to strictly comply with soundness supervision requirements and to rigorously manage capital adequacy, including liquidity management.

In a statement, Ant Group said, "We will apply to establish a financial holding company to enable regulation of financial-related businesses." It added that it will establish a personal credit reporting company to operate in accordance with relevant laws and regulations, and strengthen consumer rights protection and corporate social responsibility.

Ant Group is a financial company founded and effectively controlled by Jack Ma, the founder of Alibaba Group, who is its largest shareholder. It was scheduled to be simultaneously listed on the Hong Kong and Shanghai stock exchanges last November, but the listing was abruptly postponed.