Chinese regulators are trying to break down Jack Ma’s Ant Group’s popular payment app Alipay, the Financial Times reports.
According to France Télécom, regulators want Alipay to create a separate application for its lending business and transfer user data to a new credit rating joint venture in which a Chinese state – owned company has a significant stake.
Reuters first reported news from the joint venture last week.
Under the new plan, Alipay – which has more than a billion users – will no longer be able to check customers’ creditworthiness internally and will have to rely on external credit scores. Referring to the sources, France Télécom added that Alipay was not the only online lender in China affected by the changes.
Earlier this year, Alipay was forced to set up a separate consumer finance company which provide Antti with two credit services, Huabei and Jiebei.
These steps are part of China’s efforts to suppress technology company monopolies. Last year, Ant Group had a record $ 34 billion IPO in Hong Kong and Shanghai suspended at the last minute after the company’s founder I publicly criticized the Chinese regulatory authorities.
Mom has been saying ever since Ant Group follows the requirements of the regulators, leaving open the possibility future IPO.
Ant Group is a subsidiary of Alibaba Group
which saw its Hong Kong shares jump in trading on Monday after the report.