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Beijing wants to deal with Alipay, the 1bn chief executive of Jack Ma’s Ant Group, and create a unique business venture for the company’s most lucrative business venture, with the most visible reorganization of the fintech giant.
Chinese authorities have already ordered Ants to separate the back The demise of its two lending businesses, Huabei, which is similar to the credit card, and Jiebei, which makes a few unsecured loans, from all its financial contributions and bringing in foreign entrants. Now officials want the two businesses to redistribute an independent program.
The system will also allow the ants to reverse the use of their antibodies, which are based on two people who are familiar with the process.
“The government believes that the strongest technical skills are due to their data processing,” said a person close to Beijing’s financial management. “It wants to end this.”
The move could slow down Ant’s rental business, with Huabei and Jiebei’s slight growth and boosting the IPO that was set up last year. The CreditTech segment, which comprises the two units, acquired Ant’s largest operating business for the first time in the first half of 2020, accounting for 39 percent of the group’s revenue.
The agency’s growth, which helped bring out about one-tenth of the consumer debt that failed to repay last year, came as a shock to borrowers who are frustrated with borrowing money and financial risk.
Ants have been struggling to negotiate a new partnership with regulators, but in June an agreement was reached that would see state-owned companies in their region, including Zhejiang Tourism Investment Group, have a bigger share.
The district government acted as an antitrust by not forcing government agencies to cooperate, people said.
“Given the interdependence between Ant and Zhejiang, the fintech team will have a great idea of how the new JV works,” said a senior official at People’s Bank in China. “But the new arrangement has also ensured that Nyerere respects the party when it comes to making decisions.”
A source close to Nyerere said the Ma team was currently leading the project. “What does Zhejiang Tourism Investment Group know about debt consolidation – none,” said the man, as observers at the anthill were still worried about losing their power in the future.
Reuters first revelation The creation of a joint venture to ensure that Ant and Zhejiang Tourism Group each share prices 35% with their government partners and private organizations sharing small shares.
The new company is applying for a credit card, which Ants have long dreamed of. China’s central bank has issued only three licenses – all of which are state-owned – to ban ants making money completely the amount of data that has been collected by Chinese citizens.
But in preparation for the process, Ants will lose their opportunity to check if the debtors’ debts are matched. For example, a prospective Alipay user seeking a loan may see their application go to a new credit card company where their history is based and then go to the new lending program of Huabei and Jiebei to provide the loan.
So far the process is integrated into Alipay and Ant said it made “decisions within seconds” on its idea of a suspended IPO. The company did not respond to an email request for comment.
Ants are not the only Chinese debtors affected by the new law. This summer the central bank told players in the industry that financial decisions should be made based on what the authorized credit bureau should do rather than the owners’ credentials, said one resident.
Another senior mortgage lender said this could be “less” on their side as the company could no longer use their knowledge to make decisions on repayment.