According to the Financial Times, China’s largest payment app, Alipay, with over a billion users, is being sought to be smashed.
The report said Ant may have to hand over user data that underpins its credit decisions to a new credit scoring company that will be partially owned by the government.
Alibaba shares fell more than 4% in Hong Kong trading on Monday. Stocks have been targeted before. So this isn’t the first time Ant Group has been targeted by the Chinese government.
The business empire of both Ant Group and Alibaba co-founder Jack Ma has been affected by many high-profile regulatory measures.
Chinese authorities began showing increased interest in Ant Group in October last year after Mr. Ma criticized its regulators for stifling too much innovation. The following month, regulators busted Ant Group’s record $37 billion share market launch.
In April, Alibaba was fined a record $2.8 billion over monopoly concerns. At the same time, Chinese officials urged Ant to undertake a comprehensive business overhaul, including transforming itself into a financial holding firm.
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