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English|Head of China Banking Regulator: Ant Group Still has Some Issues to Work after Self-Inspection

BEIJING, March 2 (TMTPOST)— Alibaba’s fintech unit Ant Group still has some issues to be resolved during its rectification beginning from more than a year ago, according to a senior official of one of China’s top regulators on financial sector.
English|Head of China Banking Regulator: Ant Group Still has Some Issues to Work after Self-Inspection
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Source: Ant Group
Fourteen Fintech platform operators including Ant Group have basically completed self-inspections, but their rectification, directed by the People’ Bank of China (PBoC), the central bank, and other regulators, haven’t concluded as there were some issues that need to work, and any new developments would be disclosed timely, Guo Shuqing, the chairman of the China Banking and Insurance Regulatory Commission (CBIRC), answered a question about Ant’s progress in rectification and the regulators’ future plan at a press conference on Wednesday.
“These platforms operated a kind of financial business that to some extent has creativity and has not been within any regulatory regimes previously, so it requires a process to be added to regulation, which is proceeding gradually,” Guo said. “It involves various factors such as data security, protection for personal information and privacy. Besides, protections for the enterpise’s information and business secrets are complicated.” China encourages financial innovation while requires strict compliance with laws and regulations to facilitate fair competition and prevent disorderly capital expansion, Guo added.   
【English|Head of China Banking Regulator: Ant Group Still has Some Issues to Work after Self-Inspection】Ant Group was scheduled to list in Shanghai and Hong Kong on November 5, 2020 and raise more than $34 billion through its record-breaking IPO. However, the blockbuster IPO was suddenly halted prior to the dual listing.
When announcing to postpone Ant’s listing on its Nasdaq-style exchange STAR Market in the beginning of November, 2020, the Shanghai Stock Exchange said the major events that Ant had experienced, including changes on fintech regulatory environment, “could make the company disqualified from issuance and listing conditions or information disclosure requirements”. The exchange also noted four regulators held talks with Ant’s actual controller Jack Ma, its chairman Eric Jing and CEO Simon Hu ahead of the listing. During that, regulators, including, the central bank, and CBIRC, ordered Ant to restructure its operations on credit, insurance and wealth management and comply with regulatory requirements.
During a meeting in December, 2020, the central bank and other financial regulators urged Ant to carry out rectifications on its key businesses, such as to operate persona credit business with license and protect personal information, to improve transparency about third-party payment transactions, to establish a financial holding company to ensure capital adequacy and regulatory compliance.
In last April, financial regulators summoned another meeting with Ant. Following regulatory requirements, Ant has develop a “comprehensive and viable rectification plan”, which consists of five key points: the first is to correct practices of unfair competition by offering more payment options for consumers and cut improper linkage between its mobile and online payment platform Alipay and other financial products such as consumer loan businesses Jiebei and Huabei ; the second is to break the monopoly of information; the third is to apply to become a financial holding company which will include all of its businesses in financial sectors and take them under regulation; the fourth is to strictly implement requirements of prudential supervision and revamp credit, insurance, wealth management and other financial activities; the fifth is to manage liquidity risks of major funds and proactively decrease size of its money market fund Yu'ebao, according to Pan Gongsheng, the vice governor of PBoC.

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