It is hard to say whether the Reuters report is accurate or not. Ant has refuted a Reuters report that the company had been given permission to restart its IPO process. However, neither Ant nor the PBoC has yet confirmed that the Reuters report is accurate. That would be a major milestone in restructuring the company and preparing Ant to revive its IPO. At the meeting Beijing recommended fintechs “return to their roots,” likely meaning they should focus more on payments and less on certain banking services.Īlso in June, Reuters reported that the PBoC had accepted Ant Group's application to set up a financial holding company. The meeting noted that China will boost the supervision of large payment firms to combat systemic financial risks and will support platform companies in servicing the real economy. The first clear indication of this possibility came in June, when China’s state media reported that Chinese President Xi Jinping chaired a top-level meeting that approved a plan for the “healthy development” of China's large payment firms and fintech sector. There are signs that China will ease its fintech crackdown as part of a broader move to stimulate the ailing economy, which has struggled amid punishing zero-Covid restrictions.
#Alipay tencent wechat pay qq chinesealperreuters license
Regulators reportedly believe that Tencent's current payments license owned by its TenPay unit, the backend provider of wallet services on WeChat and QQ, as insufficient to cover WeChat Pay's services.Ĭustomer scanning QR code, making a quick and easy contactless payment with her smartphone in a cafe getty Towards the endgame It is possible that WeChat Pay could be included in the financial holding company, in which case it would be subject to the oversight of the central bank. In theory, Tencent will have to fold its banking, securities, insurance and credit-scoring services into a financial holding company that can be regulated like a traditional bank. Like Ant, Tencent has been ordered by regulators to restructure into a financial holding company, but thus far, known changes to the company’s structure are less dramatic than what Ant is undergoing. Rowe Price Group are somewhat more bullish on Ant the former still values the Chinese fintech giant at US$151 billion and latter at US$112 billion. Bloomberg estimates that Fidelity Investments cut its estimate for Ant to US$70 billion at the end of May, compared to US$78 billion in June 2021, and US$235 billion on the eve of the abortive IPO. The changes have caused Ant’s valuation to fall precipitously, as investors view them as a drag on profitability – especially the chances in the company’s consumer lending practices. Alibaba still holds a 33% stake in Ant though.
In July, the two companies agreed to terminate their data sharing agreement while all top Ant executives of Ant resigned from Alibaba’s partnership structure. Further, Ant has been required to separate itself from Alibaba, its giant parent company.
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