Beijing wants to split Alipay’s lending activities into a separate app. Ant Group, which owns payment app Alipay, will transfer the user data on the basis of which credit is provided to a new joint venture that assesses the creditworthiness and which will be partly owned by the Chinese state.
Other online lenders in China are also affected by the measures.
Last year, the IPO of ANT Group was cancelled after the authorities found irregularities, followed by months of restrictive measures by regulators for the major Chinese technology companies, including in the area of monopolies and protection of personal data.
AliPay already had to split off the lenders Huabei and Jiebei, and now they also have to be integrated into an independent app.
Alibaba is the e-commerce company of ANT Group. Alibaba’s share fell 4 percent on Monday after the message. Tech giants like Tencent and Meituan were also hit.