Chinese regulators do not want the Alipay payment system to be involved in a loan relationship by acting like a financial company. Alibaba company was warned about this.
Known for keeping the movements of foreign-sourced elements under constant control in their country, China is now obsessed with the Alibaba group, which has a trillion-dollar volume. Alibaba is not wanted to grow.
Alipay is in the focus of discussions
In fact, the problems of the Alibaba holding are concentrated on the Alipay side. With the effect of Alipay trading platform, which started its life as a mobile payment system, it soon became China’s largest payment platform.
Jack Ma didn’t just want to be a payment platform. In this regard, the savings platform has spread to different areas such as borrowing, insurance and health management services. Again, it has become a very important power in these areas in a short time.
Consequently, the growth of the Alibaba group alone disturbed the sector competitors and especially banks. For some time now, major banks in China have complained to regulators claiming that Alibaba is illegally spilling money. Finally, the expected move from Chinese regulators has arrived. The authorities sent a warning to the finance arm operating as Ant Group and asked it to return to its core structure, namely the payment platform.
In his statement, Jack Ma stated that they will cooperate with authorized institutions and try to eliminate the problematic issues in order to protect consumer rights and fulfill their social responsibilities. According to the information received, the financial sections will be gathered in a company and subject to banking regulations.
The moves made regarding Jack Ma are not the first. Last month, the Ant group’s move to open the stock market was blocked. In addition, an investigation of the internet giant’s allegation of creating a monopoly continues.