China regulators urge Ant Group to set ‘rectification’ plan swiftly

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China regulators urge Ant Group to set ‘rectification’ plan swiftly

On Sunday, China’s financial regulators including the People’s Bank of China (China’s Central Bank), banking authorities and securities and foreign exchange regulators had urged Alibaba-owner Jack Ma-backed fintech firm Ant Group to detail a plan as early as possibly to meet the country’s regulatory demands.

If truth is to be told, latest remarks from China’s financial regulators had factually reflected the grave consequences the company might face off, if a so-called “rectification” or a ward-off of its earlier plans had not been executed in a timely manner.

On top of that, according to the China’s Central Bank, banking and securities and foreign exchange regulators remarks announced earlier in the day, the Alibaba Group Holding’s fintech arm must rectify illegal financial activities at its credit, insurance and wealth management businesses, while Ant Group had also been asked to decontaminate its credit rating business in order to protect personal information as well as interests of certain businesses, China’s Central Bank Governor Pan Gongsheng said following a meet with Ant Group representatives on Saturday.

In point of fact, recent comments from China’s financial regulators came forth a couple of days after the country’s anti-trust regulators had initiated an investigation into Alibaba’s much-monopolized e-commerce business, suggesting another backlash for the Alibaba founder Jack Ma, whose fintech arm Ant Group’s $37 billion dual listing in Mainland Shanghai and Hong Kong had been blocked last month over national security concerns.

Ant Group agrees to implement regulatory requirement

Nonetheless, followed by the remarks from top financial regulators in the country, Alibaba founder Jack Ma-backed Ant Group said in a statement late in the day that it would participate in a “rectification” party and would implement regulatory requirements, while the group had also committed to a full-fledged instrumentation of the country’s financial regulations.

Meanwhile, voicing a sheer criticism, the country’s state-backed Economic Daily said in a report earlier in the day that the company must serve the people’s needs and the country’s economic development instead pledging to a bourgeoning growth of its coffers.