China fines Ant Group, Tencent’s Tenpay and other fintech companies, bookending crackdowns to ‘normalise’ supervision
- The fine imposed by People’s Bank of China could be the last chapter in Beijing’s regulatory crackdown on the Alipay operator
- Brokers say the move could clear the way for Ant Group to pursue a share listing, after its anticipated US$37 billion IPO in 2020 was cancelled
China’s central bank fined half a dozen fintech companies, including the two dominant operators in the world’s largest e-payments market, bookending its regulatory crackdowns as it switches gear to what it calls “normalised management” of the industry.
Alipay was fined 3.06 billion yuan, according to the central bank’s website. Tencent Holdings’ Tenpay was, meanwhile, fined 2.99 billion yuan.
“At present, most of the apparent problems in the financial business of platform enterprises have been rectified,” the PBOC said. “The work focus of the financial management department has shifted from pushing centralised rectification to normal supervision.”
The fine on Ant Group targets the “violations of laws and regulations of Ant Group and its subsidiaries in corporate governance, financial consumer protection, participation in business activities of banking and insurance institutions, payment and settlement business, fulfilment of anti-money-laundering obligations, and development of fund sales business in the past years”, according to the statement.
“Targeting the problems found in previous law enforcement inspections, the financial management department has recently imposed administrative penalties on Postal Savings Bank, Ping An Bank, PICC Property and Casualty and Tenpay,” the PBOC statement said.
