Ant Group, Financial services giant and Alibaba affiliate, is set to face a US$1 billion fine from the People’s Bank of China (PBOC), Reuters reported.
The development may signal the conclusion to Ant Group’s two-year regulatory revamp, which started after its US$37 billion IPO was shelved in 2020, the publication noted.
The PBOC will likely impose the fine due to the firm’s “disorderly expansion of capital,” relating to the financial risks its business has created.
The company has had informal communications with the PBOC over the past few months and could publicly announce the fine as soon as the second quarter of next year, sources told Reuters.
The fine could mark Ant Group’s move toward a listing, clearing the path for a financial holding license.
China’s investigations into local tech giants have resulted in a number of fines – Alibaba was asked to pay US$2.5 billion, while ride-hailing firm Didi Global received a US$1.2 billion penalty, among others.
See also: Behind Ant Group’s revived SEA ambitions
Editing by Miguel Cordon
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