Beijing turns up heat on data holding firms, seeking to divide Ant Group’s Alipay
Beijing regulators, who are acting increasingly hawkish around sensitive data firms, are reportedly seeking to break up Ant Group’s loans business Alipay to form a separate app instead.
Under the proposal, Jack Ma’s Ant Group will hand over its user data to a new credit scoring joint venture with state-backed firms, the Financial Times first reported, citing people familiar with the matter.
The plan forms the latest blow for Ma’s beleaguered Ant Group, that had a highly anticipated initial public offering (IPO) quashed last year – which sparked China’s recent regulatory overhaul.
The personal credit-scoring firm, between Ant and Zhejiang Tourism Investment Group, will see each business take 35 per cent of the fintech firm.
Other state-backed partners, including Hangzhou Finance and Investment Group and Zhejiang Electronic Port, will then own a little over five per cent each, one of the people said.
The new rules will reportedly not only hit Ant, but other local online lenders.
City PM could not immediately reach Ant Group for comment.
Regulations have increasingly targeted internet, telecommunications and education sectors due to political or national-security concerns over the data the firm’s hold.
Just weeks ago, Beijing suggested new rules that would ban sensitive data firms from foreign listings, in yet another bout of hawkish policy.