Chinese regulators imposed 7.12 bn yuan fine on Ant Group, ending years-long regulatory overhaul

 

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China’s regulators imposed a total of 7.12 billion yuan ($984 million) fine on Ant Group for violating laws concerning consumer protection and corporate governance, one of the largest fines for an internet company in China, according to a statement released by the China Securities Regulatory Commission (CSRC).

The penalty is smaller than the $2.8 billion fine slapped on Alibaba Group in April 2021 for breaching the antitrust laws of the State Administration of Market Regulation (SAMR).

The penalty ends a years-long regulatory overhaul of the fintech company and will help pave the way for the fintech firm to secure a financial holding company license, seek growth, and eventually, revive its plans for a stock market debut.

Since 2020, Ant Group has been actively promoting rectification and reform under the guidance of the Chinese financial regulators and has now completed the rectifications, the company said in a statement after receiving 7.2 billion yuan penalty. 

Ant sincerely accepts and firmly obey the penalty issued by the regulators and will further consolidate the level of compliance governance, it said.

In the future, Ant will continue to enhance its technological R&D capabilities and strive to provide better service to the real economy, especially small and micro businesses, and create greater value, it said.