As fintech firms elsewhere make expansive forays into various facets of financial services, China’s Ant Group has been ordered by regulators to reverse course and focus on just payments services.
Ant executives were summoned over the weekend and told to «rectify» the firm’s lending, insurance and wealth management businesses, according to a statement from the Peoples Bank of China (PBoC).
The mainland central bank also called for a timetable as soon as possible and to understand the need for the overhaul.
Tech Tightening
Fintech in China is facing instability with notable events including Jack Ma’s comments about the mainland's outdated regulations, an Ant IPO pullout believed to be ordered by President Xi Jinping and continuous tightening against the sector.
In addition to accusations against Ant over issues relating to governance, compliance and regulatory arbitrage, regulators have also come after Ma’s Alibaba over monopolistic practices.
Ant has also been ordered to set up a separate financial holdings company to ensure sufficient capital and data privacy protection, PBoC added.
