Alibaba shares are back to lows
Alibaba shares are back to l...
Subscribe to Newsletter

Alibaba shares are back to lows

14 September 2021
3987
2 min.
5
Alibaba shares are back to lows

Unbundling Ant Financial

Beijing makes plans to separate financial giant Alipay Ant Group, which is 33 percent owned by Alibaba. Also, Beijing indends to create a separate credit reporting app that would be partly owned by the state, Financial Time reports. Alibaba's shares fell 1.5 percent in the news.

Alibaba (BABA) shares returned to lows, falling 1.5% in the post-market on Monday after Financial Time published insider information that Chinese financial giant Ant Financial may be split into separate entities.

Beijing is discussing moves to separate its Alipay payment app and Ant Group's high-yield credit services into separate businesses. The company's two credit units, Huabei, could be spun off into a new entity and attract outside shareholders.

These credit applications have already overtaken Ant's core digital payment processing business in terms of revenue and brought in 39% of the financial group's revenue.

In this way, the Ant group must transfer the user data that is the basis for lending decisions.

This summer, China's central bank told industry participants that lending decisions should be based on data from approved credit rating companies, not their own data, FT reported.

All of this is a continuation of Beijing's policy of tightening regulation and imposing new requirements and regulations on Chinese tech giants, including measures in the area of user data protection.

Alibaba shares fell sharply in November 2020 due to the suspension of Ant Group's record-breaking IPO and the impact of China's new regulatory policies. In April this year, Alibaba received a record anti-trust fine of $2.75bn.

Alibaba shares have fallen almost 50% from a high of 27 October 2020 to close on Monday 09.13.2021.

In addition to Alibaba, other major companies in China have also been affected by China's regulatory policies. For example, in July, China's antitrust authority forced Tencent Music Entertainment Group (TME) to give up its exclusive music licensing rights and fined the company for anti-competitive behaviour.

The IPO of Chinese online taxi ordering company Didi (DIDI) collapsed after regulators launched an investigation into alleged problems with the processing of the service's users' personal data. Didi shares have fallen 48% since the first day of trading (06.30.2021).

Companies5 in the news

Section:
Rating companies
Instagram
17 Mention
Netflix
14 Mention
X (Twitter)
10 Mention
TikTok
8 Mention
Tesla
8 Mention
Us Weekly
7 Mention
White House
6 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8167124923
Died this year
51572409
Born this year
126877254