After Alibaba received an astronomical fine of more than 18 billion yuan over the weekend, Ant Group was interviewed again by China’s financial regulator on Monday, mainly for its in-depth and effective rectification against the rectification plan. The rectification plan requires Ant to correct unfair competition in its payment business, disconnect Alipay from other financial products such as “chanting” and “borrowing”, and actively reduce the balance of Alipay.
Ant was interviewed again by Chinese regulators, who asked Alipay to disconnect from other financial products such as “chanting” and “borrowing” and to lower the balance of Alipay. According to a Reuters report today, the central bank’s website published a question-and-answer session with Vice Governor Pan Gongsheng on behalf of the central bank, the CBRC, the CSRC, the OFAC and other financial management authorities about another interview with Ant. He stressed that the platform companies should carry out financial business to serve the real economy and prevent financial risks, not to make technology become a “protective color” for illegal and illegal acts; to insist that all financial activities are included in the financial supervision, and financial business must be licensed to operate.
“This time, the financial management authorities again jointly interviewed the relevant personnel of Ant Group, mainly to request that Ant Group must face up to the serious problems in financial business activities and the seriousness of the rectification work, align with the regulatory requirements and the proposed rectification plan, and carry out in-depth and effective rectification,” said a press release posted on the central bank’s website.
Since the first joint regulatory interview by the four departments in December last year, Ant has formed a comprehensive and feasible rectification plan. According to Pan Gongsheng, the rectification includes five main areas.
First, correcting unfair competition in payment business, giving consumers more choices in payment methods, disconnecting Alipay from other financial products such as “chanting” and “borrowing”, and correcting irregularities such as nesting credit business in the payment chain.
Second, break the monopoly of information, strictly implement the requirements of the Credit Industry Regulations, license personal credit business in accordance with the law, follow the principle of “lawful, minimum and necessary” collection and use of personal information, and protect personal and national information security.
Third, the Ant Group as a whole has applied for the establishment of a financial holding company, and all institutions engaged in financial activities are included in the financial holding company to be regulated, to improve risk isolation measures, and to regulate related transactions.
Fourth, strictly implement prudential supervision requirements, improve corporate governance, seriously rectify illegal credit, insurance, wealth management and other financial activities, and control high leverage and risk contagion.
Fifth, control the liquidity risk of important fund products and take the initiative to suppress the balance of the balance.
The report, the Chinese official media – Economic Daily published a commentary article on this, said that the financial management authorities again jointly interviewed Ant “clear direction, bright attitude and requirements”, the financial regulators put forward targeted requirements covering payments, personal information protection, connected transactions, corporate governance and credit, insurance, wealth management and other areas, the measures are clear and The clear measures and steps are undoubtedly a “model” for the financial regulation of the entire platform economy.
China’s four-month anti-monopoly investigation into Alibaba’s “abuse of dominant market position” ended with a record fine of 18.228 billion yuan. The fine had a limited financial impact on Alibaba, and with the official media’s tone of “adhering to both development and regulation”, the fine cleared the gloom that had been weighing on it for months, with Hong Kong shares closing up 6.5% on Monday.
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