China orders Ant to return to its roots in payments services
- Posted by: vitu
- Categories: Asia, Business
BEIJING (BLOOMBERG) – Chinese regulators ordered Jack Ma’s online financial titan Ant Group to return to its roots as a provider of payments services, threatening to throttle growth in its most lucrative businesses of consumer loans and wealth management.
The central bank summoned Ant executives over the weekend and told them to “rectify” the company’s lending, insurance and wealth management services, the People’s Bank of China said in a statement on Sunday (Dec 27). While it stopped short of directly asking for a breakup of the company, the central bank stressed that Ant needed to “understand the necessity of overhauling its business” and come up with a timetable as soon as possible.