Chinese Authorities Order Alipay to Separate Loan Business

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Chinese authorities have begun to split Alipay, China's largest mobile payment service.

On the 13th (local time), a British economic media outlet reported, "Chinese authorities have demanded that user information of the virtual credit card 'Huabei' and small loans 'Jiebei' be transferred to a joint venture between Ant Group and state-owned enterprises, and that a separate app be created."

Ant Group, a subsidiary of China's Alibaba Group, will establish a joint venture with three Chinese state-owned enterprises as early as October in accordance with the authorities' order. The company will be responsible for operating Ant Group's key business data, including consumer data collection, management, and analysis.

A source close to Chinese financial regulators said, "The government believes that big tech's monopoly power comes from data control," adding, "They want to put an end to it."

This move is analyzed to reduce Ant Group's growth in the Chinese loan market. Huabei and Jiebei accounted for 39% of Ant Group's revenue last year.

The media stated, "It is about one-tenth of Chinese consumer loans," and added, "This has made the authorities anxious."

This content was produced with the assistance of AI translation services.