The Chinese authorities have tightened pressure and regulations on Big Tech. They imposed $1 billion fines on Ant Group. Ant Group is Alibaba’s financial subsidiary, the largest e-commerce company. The media argued that the Chinese authorities ordered the payment of such fines on charges of misconduct. They have also ended the investigation conducted over the past two years. Sources said authorities will officially announce the move in the second quarter of next year. They said they receive fines for financial risks caused by misconduct and reckless business activities related to Ant Group’s disorderly capital expansion.
Ant’s fines might help the company to pave the way in securing long-awaited financial holding company license. They could also seek ways to grow more. Then, they have the hope to revive the company plan for the market debut. Under Alibaba’s founder control, Jack Ma Yun was in a challenging situation after Xi Jinping’s critical response to financial policy. As a result, he was under intense investigation after being forced to cancel the November 2020 IPO. In recent months, the People’s Bank of China has led Ant Group’s structural reform. The firm collects fines by holding it responsible for illegal activities.
The People’s Bank of China plans to finalize consultations with other regulators on the reorganization of Ant Group soon in December. The media observed that if Ant Group implements the fine, it will be able to pursue growth again. This is after obtaining a license for a financial holding company. They could finally open the way to be listed on the stock market. Earlier in April last year, Alibaba paid a record 18.2 billion yuan. These were the fines for violating the Antimonopoly Act.