Recently, the famous Jack Ma’s Ant Group, formerly known as Ant Financial and Alipay, is asked concerning their payments. The firm is an associate company of the Chinese Alibaba Group. Plus, Ant group holds the country’s largest digital payment platform Alipay; which also assists over one billion users and 80 million retailers. As of June 2020, the payment has been reaching 118 trillion Yuan. So we reckon it’s a jackpot!
In recent times, China asks Jack Ma’s Ant Group Company to return to its payment roots. It is the latest news after China’s abrupt stop to Ant’s blockbuster Alibaba. Alibaba is prominent for its $37 billion initial public offerings in Shanghai and Hong Kong.
Why is the Chinese Bank urging Ma’s Ant Group Company to come up with the subject?
The issue started on Sunday; when Chinese regulators ordered Jack Ma’s Ant Group company to revert to its roots as a provider of payments services. Thereby, threatening to suppress the company’s growth in its maximum profitable businesses of consumer loans and wealth management.
Regarding the matter, the Chinese banks asked the company to make amends in their lending, insurance, credit, and wealth management services. The sudden Chinese regulators’ other officials’ reactions are; because of Jack Ma’s Lampon in October 2020. He was vitriolizing the country’s regulatory system for smothering innovation.
And one of the Beijing-based analysts claimed that “This is the culmination of a string of regulations and sets the direction for Ant’s business going forward”. Continuing, “We haven’t seen a clear indication of break-up yet. Ant is a giant player in the world and any breakup needs be to be cautious”.
Jack Ma’s Ant Group company Vs Central Bank?
The central bank said that Jack Ma’s Ant used its dominance to exclude rivals, hurting the interests of millions of its consumers across the globe.
In response, the Ant company stated that it will hover a special team to generate proposals and a timetable for an overhaul. Furthermore, assured that during this crisis, it will maintain business operations for users. Also, given promises to keep fixed expenses for consumers and financial partners.
As everyone does know, Ant is a top executive with daily interactions and production. But on the other hand, regulators, such as the China Banking and Insurance Regulatory Commission, are analyzing Ant should give up control or not; in a way to contain the risks it feigns to the economy. Moreover, officials are yet to decide about string with its different kinds of operation or dealing with online and offline services separately, or totally attempt a different route.