Ant Group, a key Techpin affiliate of Alibaba, China’s largest e-commerce company, stopped listing in November last year. The Chinese financial authorities have put the brakes on it. The financial authorities suggested that a financial holding company should be established as the reason for the suspension of listing.
There are two interpretations of Ant Group’s delisting. One analysis is that the main targets of the Chinese government are Jack Ma, founder of Alibaba, and Alibaba Group, and to do this, they have come up with Big Tech (large information technology companies) regulations. The other is that the main purpose is to reduce the influence of Big Tech, and founder Jack Ma and Alibaba have been caught as pilot cases. In the early days, many people paid attention to founder Jack Ma’s remarks criticizing financial policies ahead of the listing of Ant Group. However, as the government continues to expand regulations on Big Tech in all directions, there is a growing analysis that not only Alibaba but also other companies will be affected for a considerable period of time.
Alibaba’s market share in the online market is 59%. Second place Jingdong is also 26%. In China, where online transactions account for half of total retail sales, their market dominance can never be ignored. In the food delivery market, Meituan accounts for 65% and Alibaba-affiliated Urmer accounts for 27%.
Tencent’s Chinese version of KakaoTalk, WeChat, has 1.2 billion users, which is virtually used by the entire nation 비대면폰테크 except for children and the elderly. Tencent has partnered with Jingdong, the second-largest e-commerce company, and Findudu, the third-largest company, to expand its influence in this area. In mobile payments, WeChat Pay has 800 million users and Alipay has 700 million users. Big Tech has a great influence not only on the economy but also on politics and society. It is also a potential risk factor that will threaten the one-party system.
China has actively regulated the financial industry, including small loans, a major source of revenue for Big Tech. Alipay and WeChat Pay, which control 90% of Chinese mobile payments, have been engaged in loan businesses with the money consumers have put in their respective accounts. Meituan and Jingdong have also been in the financial industry with customer deposits. Even when introducing joint loan products with banks, they did not put even 10% of their money. It also analyzes consumption patterns and presents customized loan products.
Chinese authorities are calling on Big Tech to set up a financial holding company that collectively manages financial subsidiaries. In November last year, the company set up a financial holding company at a non-bank financial company with financial assets of more than 100 billion yuan (about 17.5 trillion won) and introduced a rule that requires the company to sell its stake in a financial company or give up its management rights if it fails to obtain a holding company license. In order to obtain a license for a financial holding company, more than 50% of the capital of the affiliated financial subsidiary must be invested.
The financial authorities also required more than 30% of loans in microloan businesses to be covered by equity capital. If you want to operate outside of the previously registered local government, you will be required to obtain separate permission from the new area. In other words, all 31 provinces and city (省·市)s need to obtain licenses to operate nationwide