Alipay removed from Shanghai priority high-tech firms list

China’s payment giant Alipay is no longer on a priority high-tech company list in Shanghai, Bloomberg reported.

The company, owned by Alibaba’s Ant Group, was removed because it didn’t meet R&D spending requirements, according to a notice from the Chinese government.

As a result, the fintech giant may not receive certain tax benefits.

In a statement from Alipay, it said that it only accounts for a part of Ant Group’s R&D spending. Last year, over US$2.6 billion was allocated by Ant Group for research.

It was previously reported that Ant Group might return to its IPO plans after buying a plot of land in Shanghai with Chinese conglomerate Fosun. The property will be used to accommodate thousands of Ant Group’s employees.

See also: Ant Group may see IPO comeback after Shanghai land purchase