China ends Ant Group’s regulatory revamp with US$984 million fine

It also announced that Ant Group’s Alipay was slapped with a fine of US$416 million for rule breaches.

Similar action was taken against Tencent Holdings’ Tenpay which was fined US$414 million.

The penalty for Ant Group will help pave the way for the fintech firm to secure a financial holding company licence, seek growth, and eventually, revive its plans for a stock market debut.

Ant Group said on Friday that it will comply with the terms of its penalty in all earnestness and sincerity and will continue to further enhance their compliance governance. The group will better serve and create greater value for the physical economy, especially for consumers and small businesses, it said in a statement.

The announcement of the fine comes soon after China’s ruling Communist Party appointed central bank deputy governor Pan Gongsheng as the bank’s party secretary, a move two policy sources told Reuters would be a prelude to appointing him governor.

It also follows the return to China of Ma earlier this year after spending many months overseas.

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Ma, who also founded Alibaba, withdrew from public view in late 2020 after giving a speech criticising China’s regulatory system, an event widely regarded as a trigger for the crackdown on industry.