In a recent development, China’s central bank, the People’s Bank of China, has agreed that Alipay, the popular payment app owned by Jack Ma’s Ant Group, has no controller. This statement comes in the wake of a business overhaul that saw Jack Ma giving up control of the fintech giant and relinquishing most of his voting rights.
The Ant Group had previously announced a corporate governance optimization on January 7, which aimed to address regulatory concerns. According to an Ant Group spokesperson, this optimization has been completed and will not impact the day-to-day operations of the company.
This statement from the central bank is significant as it provides clarity on the ownership and control of Alipay. It confirms that there is no single entity or individual controlling the popular payment app, which has millions of users in China and around the world.
It is worth noting that Ant Group was previously set to go public with a record-breaking IPO in November 2020. However, the IPO was abruptly suspended by Chinese regulators due to concerns over the company’s governance and regulatory compliance.
Since then, the Chinese government has been tightening its oversight of the fintech sector and cracking down on what it perceives as potential risks to financial stability. This has led to increased scrutiny of Ant Group and other major fintech companies in China.
The agreement by the central bank that Alipay has no controller could potentially pave the way for the Ant Group to address regulatory concerns and resume its plans for a public listing. It indicates that the company has taken concrete steps to improve its corporate governance and comply with regulatory requirements.
This development could also have broader implications for the fintech sector in China. It signals a willingness by authorities to work with companies like Ant Group to address regulatory concerns and ensure the stability of the financial system.
Overall, the central bank’s agreement that Alipay has no controller is a significant development that provides clarity and stability for Ant Group and its popular payment app. It demonstrates the company’s commitment to addressing regulatory concerns and could potentially pave the way for its return to the public markets.
