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<p class="has-drop-cap">The two-and-a-half-year probe into Ant Group ended after the <a aria-label="Chinese regulators fined (opens in a new tab)" href="https://www.bloomberg.com/news/articles/2023-07-07/china-ends-probe-of-jack-ma-backed-ant-with-984-million-fine" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">Chinese regulators fined</a> the financial technology (fintech) giant $984 million on Friday. The move was welcomed by Alibaba’s investors, sending shares of Ant’s affiliate surging by nearly 7% at market open on the Stock Exchange of Hong Kong.</p> 
<h3 id="china-also-penalized-tencent-for-unclear-reasons">China Also Penalized Tencent for Unclear Reasons</h3> 
<p>Shares of Alibaba saw an uptick on Friday after Chinese regulators imposed a 7.12 billion yuan ($984 million) fine on its fintech affiliate Ant Group, bringing the nearly 3-year probe to an end. According to a statement by the People’s Bank of China, the financial penalties apply to Ant Group and its affiliates in response to the company’s breach of financial consumer protection laws.</p> 
<p>The regulators also imposed fines on Alibaba’s rival Tencent Holdings, in addition to other institutions such as PICC Property &amp; Casualty Co., Postal Savings Bank of China Co., and Ping An Bank Co. Tencent will have to pay a 2.99 billion yuan penalty. However, it remains unclear why the tech conglomerate was also punished.</p> 
<p>Vey-Sern Ling, managing director at Union Bancaire Privee, <a href="https://finance.yahoo.com/news/china-ends-probe-jack-ma-124140983.html" target="_blank" aria-label="said (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">said</a> investors’ reaction comes “because scrutiny looks likely to be over and the fine, though big in absolute terms, is very manageable for such a big company.”</p> 
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<h3 id="china-halted-ant-s-ipo-in-2020">China Halted Ant’s IPO in 2020</h3> 
<p>Chinese authorities investigated Ant Group after halting the fintech firm’s record initial public offering (IPO) in December 2020. In turn, the regulators <a aria-label=" (opens in a new tab)" href="https://apnews.com/article/technology-business-hong-kong-china-bce7f7b03d9005df4dafc6d47a787e97" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">ordered Ant</a> to rectify its businesses and adhere to the regulatory requirements.</p> 
<p>Additionally, the government imposed new rules on Ant, which has a wide range of operations from consumer lending and wealth management to online payments. The People’s Bank of China <a aria-label="instructed Ant (opens in a new tab)" href="https://www.reuters.com/article/us-china-ant-group/ant-weighs-financial-holding-company-to-placate-regulators-sources-say-idUKKBN2930BL" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">instructed Ant</a> to fold all financial units into a holding company and ordered it to open its payments app to rival companies.</p> 
<p>Meanwhile, Ant’s parent company <a href="https://tokenist.com/alibaba-chinas-biggest-tech-conglomerate-to-be-split-into-six-units/" rel="dofollow" class="deco-link">Alibaba </a>decided to split into six main businesses earlier this year, including cloud services, meal delivery, logistics, and e-commerce, among others. The company’s e-commerce unit has been in talks to launch an IPO in the US, which would likely attract widespread investor attention.</p> 
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<p><em><strong>Do you think Ant will reattempt to launch an IPO now that the probe is over? Let us know in the comments below.</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/alibaba-up-3-4-as-china-completes-ant-group-probe-with-a-984m-fine/">Alibaba up 3.4% as China Completes Ant Group Probe with a $984M Fine</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Alibaba up 3.4% as China Completes Ant Group Probe with a $984M Fine

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