China’s financial regulators have urged Ant Group to fast-track ‘reform’ plan

BEIJING (Reuters) —China’s financial regulators on Sunday asked Ant Group to outline a concrete plan as soon as possible to meet regulatory demands and understand the seriousness of the “reform” work that needs to be done .

The central bank, banking, securities and foreign exchange regulators urged Ant to rectify illicit financial activities, including its credit, insurance and wealth management businesses, and personal information, the Deputy Governor of the People’s Bank of China (PBOC) Regulate your credit rating business to protect. Pan Gongsheng said the day after the meeting with representatives of the fintech group.

Ant said in a statement that it would establish a “reform” working party and fully implement regulatory requirements.

The state-backed economic daily said in a comment that Ant should serve the needs and economic development of the people while taking corporate social responsibility.

Chinese regulators abruptly suspended Ant’s planned $ 37 billion initial public offering last month, the largest track in the world just two days before its shares were due to start trading in Shanghai and Hong Kong.

On Thursday, officials said they have launched an antitrust investigation into the original Alibaba group and will call billionaire Jack Ma’s latest blow to Ant and the fintech empire Ant.

New demands from the PBOC, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange also include that Ant be more transparent about its third-party payment transactions and not to conduct unfair competition, and Its financial setup Pan said that companies follow the law to ensure capital adequacy.

China’s annual Central Economic Action Conference, a gathering of top leaders and policymakers to complete the course of the economy in 2021, vowed this month to consolidate pledge efforts and rein in “disorganized capital expansion”.

Pan said that Ant should enhance its risk management and maintain the continuity of its services and the normal operation of its business.

During the meeting, regulators pointed to ant issues including its poor corporate governance, disregard of regulatory demands, arbitrary illegal regulation, use of its market advantage to squeeze out competitors and harm the legal interests of consumers.

(Reporting by Stella Qiu, Cheng Leng, Yili Sun and Ryan Wu; Editing by William Mallard)

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