Ant Group will become a financial holding company and all institutions engaged in financial activities will be regulated according to such companies, China's central bank said Monday.
On April 12, the People's Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the Foreign Exchange Bureau jointly interviewed Ant Group again.
A question and answer published on the PBOC's official website said the regulator urged Ant Group to form a comprehensive and feasible rectification plan.
This includes correcting Ant Group's unfair competitive practices in the payment business and giving consumers more choices in payment methods.
Ant Group will disconnect Alipay from other financial products such as "Huabei" and "Jiebei" and correct irregularities in the payment chain that nest credit operations.
Ant Group will break the monopoly of information, license the personal credit business according to the law, follow the principle of "legal, minimum and necessary" to collect and use personal information and protect personal and national information security.
Ant Group will apply for the establishment of a financial holding company as a whole, and all institutions engaged in financial activities will be incorporated into the financial holding company and supervised, with sound risk segregation measures and standardized connected transactions.
Ant Group will strictly implement prudential supervision requirements, improve corporate governance, seriously rectify irregular credit, insurance, wealth management, and other financial activities, and control high leverage and risk contagion.
Ant Group will control the liquidity risk of important fund products and take the initiative to suppress the balance of Yu'ebao.
