Ant executives have been interviewed by the state regulators for the second time.
Image credit“External copyright”
On December 26, several finance administrations, such as the central bank and China Banking Regulatory Commission, interviewed with the Ant Group, with reshuffling following in five areas.
First, the company should focus on the payment business, which is also its origin. Any attempts that might lead to a monopoly status will be banned. Second, be sure to protect all the personal information while deploying a personal credit business. Third, establish a financial group company to operate all the financial services business with sufficient capital requirement. Fourth, reform the asset management and insurance sector with all non-compliant products off the shelf. Fifth, strengthen the governance on the fund and securities business, as well as the asset-backed securities issuance.
Several moves have been made in response, like decreasing the credit line of Ant CreditPay (Chinese: 花呗) for younger users with relatively lower-income, and moving the online deposit products that demand high-interest rates. All the business areas with strong financial nature might be removed and left with a pure technology company that will better fit with the Star Market. Although the restructure might adversely affect Ant Group in the short run, it will help the company to grow in a healthier way and form a more systematic market.