Alibaba shares fallen sharply on report China plans to target payment app

Alibaba shares fallen sharply on report China plans to target payment app
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Daily US Times: Chinese technology giant Alibaba’s shares have fallen sharply after report came out that its financial affiliate Ant Group is again under scrutiny.

Regulators want to break up Alipay according to the Financial Times. Alipay is China’s biggest payments app with more than a billion users.

A separate platform for the Alipay’s profitable lending operation would be created under the plan.

It would be the latest move by the Chinese government to tighten its grip on big businesses.

Ant Group could also be forced to hand over the user data that underpins its loans decisions to a new credit scoring firm, the report said, which would be partly state-owned,

On Monday, shares of the Chinese tech giant were down by more than 5% in Hong Kong trade.

Ant Group didn’t comment on the situation yet.

This wouldn’t be the first time that Ant Group has been targeted by the Chinese regulators.

The business empire of Jack Ma, the co-founder of both Alibaba and Ant Group, has been hit by a series of high-profile regulatory measures.

Beijing started to show increasing interest in Ant Group in October last year after Jack Ma criticised regulators, suggesting that they were stifling innovation.

The following month, regulators scuppered the record $37bn share market launch of Ant Group.

Alibaba was hit with a record $2.8bn fine over monopoly concerns in April.

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