Beijing is accelerating plans to bring Jack Ma’s Ant Group more closely under its control as part of a “rectification” drive that would make it difficult for one of China’s richest men to fully rebuild his online empire.
Ant’s consumer lending unit and other fast-growing parts of the financial technology group will be carved out into a new financial holding company to be regulated by the People’s Bank of China, according to people briefed on discussions between the central bank and the company.
The reorganisation would bring it directly under the thumb of the regulators Mr Ma has long brushed up against, with his public critiques irking authorities and officials at China’s state-owned banks. The PBoC issued a public rebuke of Ant at the weekend, calling on the company to be overhauled and accusing it of “turning a blind eye to compliance requirements”.