China splits Ant Group’s Alipay and forces new loan app creation: FT

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Ant Group Co in Hangzhou, China, Wednesday, January 20, 2021. Headquarters. Qilai Shen | Bloomberg | Getty Images Beijing plans to dissolve Ant Group’s Alipay and create another app for the FinTech giant’s loan business, according to a Financial Times report on Monday. Regulators have previously ordered Ant to split AliPay’s business from its lending businesses, Huabei and Jiebei. According to FT, they also now want to split their credit business into independent apps. According to the plan, Ant will hand over the user data that underpins the loan decision to the new credit scoring joint venture, FT quoted people familiar with the process. According to the report, the joint venture will be partially state-owned. Alibaba’s Hong Kong-listed stock, Ant Group’s e-commerce affiliate, fell more than 4% on Monday afternoon following an FT report. The decline affected China’s tech sector as a whole, as the Hang Seng Tech index fell by almost 3% and other Chinese tech giants such as Tencent and Meituan were also hit. Reuters said in early September that the state-owned enterprise would acquire a significant stake in the credit scoring joint venture, with Ant and Zhejiang Tourism Investment Group each owning 35% of the business. According to the FT, Ant is not the only online lender in China affected by the new rules. The latest developments have presented more challenges for Ant’s business. The company’s planned $ 34.5 billion IPO scheduled for November was terminated after a regulatory discrepancy was reported. Following months of crackdowns on Chinese tech giants, Beijing introduced a number of antitrust and data security and protection rules. China splits Ant Group’s Alipay and forces new loan app creation: FT [Source link](//www.cnbc.com/2021/09/13/china-to-split-ant-groups-alipay-force-creation-of-new-loans-app-ft.html) China splits Ant Group’s Alipay and forces new loan app creation: FT

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