Ant Group, a subsidiary of Chinese billionaire Jack Ma’s company Alibaba, has been fined $1 billion by the People’s Bank of China on Friday (July 7). Ant Group, a subsidiary of Alibaba, is a financial tech company. According to the New York Times report, this fine has been imposed by the People’s Bank of China for violation of consumer protection, payment and anti-money-laundering-related laws and regulations.
After the People’s Bank of China imposed the penalty, Ant Group said it would abide by the terms of the fine. The company said it had completed the related work on the necessary reforms from China’s financial regularity.
Ordered To Shut Down Crowdfunding Platform
Following the crackdown on Ant in 2020, its affiliate Alibaba faced a record US$2.8 billion antitrust fine, while ride-hailing company Didi faced a US$1.2 billion fine. Chinese authorities fined Ant and its subsidiaries US$1 billion and ordered the company to shut down its crowdfunding platform Xianghubao for medical costs.
Alibaba’s 33 Percent Stake
Alibaba has a 33 per cent stake in Ant Group’s stock, which increased by 6 per cent on July 6. At the same time, according to NYT, Regularity has also announced a change in its focus, as most of the major problems in the financial business of the tech giants have been fixed.
Founded in 2014, Ant is one of the world’s largest online financial tech companies. In November 2020, Chinese regularity stopped Ant’s massive IPO.
