BEIJING (Reuters) – The central bank of China on Sunday urged Ant Group to work out a concrete plan as soon as possible to meet regulatory requirements and fully understand how serious the “remedial work” is. it must perform.
The People’s Bank of China (PBOC) also urged Ant to rectify illegal financial activities, including in its credit, insurance and wealth management companies, and to regulate its credit rating activities to protect personal information, Vice Governor Pan said. Gongsheng a day after a meeting with representatives. of the fintech group.
Chinese regulators abruptly suspended Ant’s planned $ 37 billion IPO last month, which was on track to become the world’s largest, just two days before its shares would start trading in Shanghai and Hong Kong.
Ant did not immediately respond to an email request for comment.
On Thursday, authorities said they had launched an antitrust investigation into parent company Alibaba Group and would summon Ant in the coming days, the latest blow to Jack Ma’s e-commerce and fintech empire.
The PBOC’s requirements also include that Ant is more transparent about its third-party payment transactions and does not engage in unfair competition, and that the establishment of financial holding companies is in line with the law to ensure capital adequacy, Pan said.
China’s annual Central Economic Work Conference, a gathering of top leaders and policymakers to chart the course of the economy in 2021, this month pledged to strengthen anti-monopoly efforts and curb “disorderly capital expansion.”
Pan said Ant should strengthen its risk management and maintain the continuity of its services and normal business operations.
At the meeting, regulators pointed to Ant’s problems, including poor corporate governance, opposing regulatory demands, illegal arbitrary regulation, using its market advantage to express competitors and harming consumers’ legal interests, he said.
Reporting by Stella Qiu, Cheng Leng, Yilei Sun and Ryan Woo; Editing by William Mallard