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Last week, in a strange turn of events, Alibaba reportedly came under scrutiny for monopolistic practices. Ant Group, another company founded by Jack Ma, has also been called to participate in meetings “designed to push for increasingly stringent financial regulations.” According to new reports, the search meetings involve asking the company to stick to its roots.
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Ant started as a payment service provider, similar to others like PayPal. But it has since expanded to also offer consumer loans and wealth management. And the People’s Bank of China is now asking the company to withdraw the two newer services. Although he did not ask for the dissolution of the company.
This would limit Ant Group’s growth potential, with the newer companies having the most growth potential. The report quotes China’s head of financial research at Jefferies Financial Group. Shujin Chen, saying that the online payment industry is already saturated in China. And that Ant market share has reached its limit.
That is the second blow in rapid succession that Jack Ma has received from the Chinese administration. For its part, Ant Group said in a statement that it will maintain its business operations for users while it works to comply with the demands of the authorities.
(Source: Bloomberg. Image: Alibaba)
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