Home Business News: The CCP wants to split Alipay to create an independent application | Ant Group | Epoch Times

News: The CCP wants to split Alipay to create an independent application | Ant Group | Epoch Times

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[Epoch Times September 14, 2021]The Chinese Communist Party is preparing to split Alipay and create a separate application. This may cause the growth of Ant Group’s loan business to slow down. A former official of the Central Bank of China said: “The new structure will Make sure that the Ant Group listens to the party’s opinions when making key decisions.”

According to the “Financial Times” news, the Chinese Communist Party’s regulator has ordered Ant Group to combine its two loan businesses-similar to the traditional credit card “Huabe” and the backend of “Biaobei” which provides small unsecured loans with other financial products. Separate and introduce external shareholders. At the same time, the official also hopes to split these two businesses into a single application.

According to two people familiar with the matter, according to the plan, Ant Group will also hand over user data on which lending decisions are made to a new credit scoring joint venture, which will be partially state-owned. A former official of the Central Bank of the Communist Party of China said: “The new structure will ensure that the Ant Group will follow the party’s opinions when making key decisions.”

According to the news, this is the most striking restructuring of the financial technology giant so far, which may cause the growth of Ant Group’s loan business to slow down.

In June of this year, the Ant Group and the local authorities reached a compromise. Several state-owned companies in Zhejiang Province, such as the Zhejiang Provincial Tourism Investment Group, will hold a majority stake in the Ant Group. Ant Group and Zhejiang Travel Investment Group each hold 35% of the shares, and other state-owned and private partners will hold smaller shares.

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A person close to Ant Group said that Ant Group executives are worried that they may lose control of the company in the future.

Alipay announced in August last year that its global users are about 1.2 billion, and there are 900 million active users in China. At present, Alipay users can connect the app to the bank’s credit card to make payments when shopping, or use Alipay’s microloans to pay for shopping.

The Chinese Communist Party’s regulators have recently been conducting in-depth rectifications on Ant Group and other super-large network platform operators. The scope of rectification includes anti-monopoly and privacy issues, user data security, and cryptocurrency, etc.

Editor in charge: Liu Yi#

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