Alipay pressed to break up financial services - Mobile World Live

Alipay pressed to break up financial services

13 SEP 2021

Chinese regulators intensified scrutiny of Alibaba, with the e-commerce giant’s financial arm Ant Group ordered to separate its rapidly expanding commercial loan business into a separate unit from Alipay, Financial Times reported.

Regulators want the unit to share customer data used in making loan decisions, with a newly-created partly state-owned credit scoring venture, the newspaper wrote.

Ant Group began to restructure its businesses in April to address government-mandated changes requiring it to cut links between Alipay and other financial units, including its two lending businesses.

A suspension of a dual listing of Ant Group on the Shanghai and Hong Kong exchanges in November 2020 marked the beginning of a state crackdown on internet companies’ business practices and compliance with regulations.

Over the past few months, authorities initiated a number of more restrictive rules covering recommendation algorithms, competition and online gaming.

Back

Author

Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

Read more

Related

Tags