China set to fine Jack Ma’s Ant Group over $1 billion
The Central Bank of China is set to impose a fine of more than $1 billion on Jack Ma's Ant Group, according to a report from Reuters, citing several sources with direct knowledge of the matter. This fine, the report says, will set the stage for ending the
The Central Bank of China is set to impose a fine of more than $1 billion on Jack Ma's Ant Group, according to a report from Reuters, citing several sources with direct knowledge of the matter.
This fine, the report says, will set the stage for ending the fintech company's two-year-long regulatory overhaul.
The Apex Bank has been the driving force behind the regulatory revamp at the Ant Group after the Chinese firm’s $37 billion IPO was scuttled at the last minute in 2020 immediately after billionaire founder Ma publicly criticized China’s regulatory system for stifling innovation.
The overhaul included turning itself into a financial holding firm, subject to rules and capital requirements similar to those for banks.
The $1 billion fine will centre on Ant’s alleged violations relating to a “disorderly expansion of capital” and the corresponding financial risks its once freewheeling businesses have caused, said one of the sources.
However, a fine on Ant could help pave the way for the company to secure a long-awaited financial holding company license, seek growth again, and eventually revive its plans for a public market debut.
