Chinese authorities announced on Friday a 7.12 billion yuan ($984 million) fine for Ant Group, ending a years-long regulatory overhaul of the fintech company and marking a key step to concluding a crackdown on the country’s internet sector. Ant’s penalty comes at a time when Chinese authorities are keen to boost private sector confidence as the $17 trillion economy struggles to recover despite the lifting of zero-COVID-19 curbs earlier this year.
Technology
China ends Ant Group’s regulatory revamp with nearly $1 billion fine
07 July 2023, 3:16 pm 1 minute
Market Impact
The penalty amounts to one of the largest ever fines for an internet company in China. U.S.-listed shares in Ant’s affiliate, e-commerce titan Alibaba Group (9988.HK), rose 9% after the PBOC’s announcement. Earlier in the day, its Hong Kong shares jumped as much as 6.4% after the Reuters report before giving up some gains. Ant’s penalty paves the way for the fintech firm to secure a financial holding company license, seek growth, and eventually, revive its plans for a stock market debut.
Article Tags
Topics of Interest: Technology
Type: Reuters Best
Sectors: Technology
Regions: Asia
Countries: China
Win Types: Overall Coverage
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Important Regional Story
