The Central Bank of China (PBoC) wants to control Ant Group’s huge inventory of consumer loans. The move is considered a new blow by the Beijing administration to the financial technology giant of billionaire Jack Ma.
According to the Financial Times, the PBoC wants Ant Group to transfer its data warehouse – one of the most valuable assets of billionaire Jack Ma’s internet empire – to a state-owned credit rating company run by former executives. Central Bank executive.
In addition, this company will serve other financial institutions such as state-owned banks to compete in lending with fintech companies. According to a source close to the Financial Times, Ant Group wants to lead the new company. But PBoC said that this will create a conflict of interest. China wants to take control of Ant Group’s huge data warehouse. (Photo: FT) “The first priority is to ensure that the new business fully complies with the regulations. State participation will help the PBoC achieve those goals,” a source revealed. In January, the PBoC announced regulations requiring Chinese companies to secure government approval before being allowed to provide personal credit services. These companies have to ensure that they have 3 licenses and all are subject to government control. PBoC officials held a conversation with Ant Group executives on April 12. This month, Chinese regulators also asked Ant Group to restructure and sanction Xi. Alibaba Group Jack Ma’s record fine of 2.8 billion USD. Banks in China have long complained that Ant Group has benefited by not having to comply with the same strict regulations on lending as they do. The company has established a dominance in China with more than 700 million users a month on Alipay, an Alibaba mobile payment app. By the end of June 2020, Ant Group had developed a consumer lending platform with outstanding credit to about 1,700 billion yuan ($ 262 billion), more than any Chinese bank. Come on. In addition, the fintech company charges banks for loans on their apps. “Ant Group’s credit database offers a lot of value to banks,” said a former PBoC official. A person knowledgeable about this issue commented: “Ant Group needs to find a way to legalize this data warehouse. The proposed solution is to set up a credit reporting company approved by PBoC”. But there are also opinions that state control could affect the ability to collect and analyze information for Ant Group’s core business units, including consumer lending. “Ant Group really wants to hold on to its most valuable assets,” said a source. The central bank of China will release a report this Sunday on the creation of a state-controlled data company. However, neither Ant Group nor the PBoC have yet to comment on this. Phuong Anh (According to Financial Times)
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