China to end Ant Group's regulatory revamp with fine of at least $1.1 billion

economictimes.indiatimes.com:

Ant Group as soon as Friday, sources with direct knowledge of the matter said, bringing an end to the fintech company's years-long regulatory overhaul. The People's Bank of China (PBOC), which has been driving the revamp at Ant after its $37 billion IPO was scuttled in late 2020, is expected to disclose the fine in the coming days, the sources told Reuters. The penalty, which would be one of the largest ever fines for an internet company in the country, will help pave 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.

For the broader technology sector, an Ant fine would mark a key step towards the conclusion to China's bruising crackdown on private enterprises that began with the scrapping of Ant's IPO and which has subsequently wiped billions off the market value of several companies. Ant and the PBOC did not immediately respond to requests for comment. The sources did not wish to be named as they were not authorised to speak to the media.

Hong Kong shares in Ant's affiliate, e-commerce titan Alibaba Group, jumped as much as 6.4% after the Reuters report was published before giving up some of the gains. Moves by the Chinese government to «finalise penalties, clarify its expectations, and draw clear compliance boundaries are key to stabilising private sector confidence,» said Rukim Kuang, founder of Beijing-based Lens Consulting. 'DISORDERLY EXPANSION OF CAPITAL' Founded by billionaire Jack Ma, Ant undertakes payment processing, consumer lending and insurance products distribution, among other businesses.